Another Bitcoin Mining Firm Files for Chapter 11 Bankruptcy
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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.
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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.
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