Bitcoin mining company Rhodium Enterprises has initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, disclosing potential liabilities of up to $100 million.
The Chapter 11 filing, made on August 24, includes six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. The company’s debts are estimated between $50 million and $100 million, while its assets range from $100 million to $500 million.
This move follows reports of financial troubles, including a failure to repay $54 million in loans due in July. In 2021, Rhodium had secured $78 million in loans for its subsidiaries.
Disagreements over two proposed debt restructuring plans led to the current bankruptcy filing. Chapter 11 will allow Rhodium to reorganize its debts and continue operations while negotiating new repayment terms.
Similar bankruptcy filings have occurred in the sector; for example, Core Scientific filed under Chapter 11 in December 2022 and emerged from bankruptcy in early 2024.
Rhodium, affected by the recent bear market, faces declining miner profits exacerbated by the April Bitcoin halving event and rising energy costs. Rhodium has engaged Quinn Emanuel Urquhart & Sullivan for bankruptcy counsel and Province for restructuring advice.
Rumors are heating up around Solana-based memecoin platform Pump.fun, which is said to be prepping a $1 billion token sale at a $4 billion valuation—though the team has yet to confirm any details publicly.
Brad Garlinghouse has flatly denied that Ripple ever attempted to acquire Circle, the company behind the USDC stablecoin, shutting down weeks of speculation about a potential $5 billion deal.
Trump Media & Technology Group (TMTG) is making a bold move into the crypto investment space by backing a new spot Bitcoin ETF.
A sharp rally could be brewing for the S&P 500, with analysts suggesting the index may push toward 7,400 in the coming months—a move that would mark a significant leap from its current level near 5,950.