Bitcoin miner Rhodium has filed for bankruptcy in a Texas court

Bitcoin mining company Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas with up to $100 million in liabilities. The filing, filed Aug. 24, includes six subsidiaries - Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. According to the filing, the company's liabilities are between $50 million and $100 million, while its total assets are estimated to be between $100 million and $500 million.
Rhodium's bankruptcy was one of several reports that Rhodium-owned businesses had run into financial difficulties. Rhodium Enterprises, which owns Rhodium Encore and Rhodium 2.0, reportedly failed to repay $54 million in loans owed to lenders in July. In 2021, Rhodium raised $78 million in loans for its subsidiaries.
The company reportedly proposed two workouts ahead of the deadline, but disagreements among shareholders led to a default. Under Chapter 11 voluntary bankruptcy, the company will be able to restructure its debt while continuing to operate, allowing it to negotiate a repayment plan under revised terms.