Bitcoin Mining Firm Rhodium Files for Bankruptcy Under Chapter 11 Code Along With 6 of Its Subsidiaries

Rhodium Enterprises is a Texas-based Bitcoin mining firm known for using liquid-cooling technology to improve mining efficiency.

Rhodium Enterprises Holdings Inc., a Bitcoin mining firm based in Texas, filed for bankruptcy on Monday, March 13, along with six of its subsidiaries. The company is now seeking to reorganize its debts while continuing its operations.

Rhodium filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. The filing comes amid a broader downturn in the cryptocurrency market, which has led to lower profits for Bitcoin miners.

According to the filing, Rhodium Enterprises has debts between $50 million and $100 million, and its total assets are between $100 million and $500 million. The company is also facing a lawsuit from competitor Riot Platforms, which is seeking to recover more than $26 million in unpaid fees related to the use of Riot’s Whinstone Bitcoin mining facilities.

Rhodium Enterprises is a Texas-based Bitcoin mining company that uses liquid-cooling technology to improve mining efficiency. The company focuses on large-scale Bitcoin mining operations, leveraging the abundant and affordable energy resources in Texas. Rhodium has always tried to increase its mining power while maintaining a sustainable and environmentally friendly approach to mining.

This Bitcoin mining firm filed for bankruptcy under Chapter 11 along with six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. As per the filing document, this financially struggling company has debts between $50 million and $100 million, and its total assets are between $100 million and $500 million.

Documents show that Rhodium Enterprises is facing financial struggles, having failed to repay $54 million in loans in July. Despite raising $78 million in loans for its subsidiaries in 2021, the company encountered disagreements among stakeholders over debt restructuring proposals, leading to a default. Now, under Chapter 11 bankruptcy, Rhodium plans to reorganize its debts while continuing its operations, aiming to negotiate a new repayment plan.

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