Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Another Bitcoin Mining Firm Files for Chapter 11 Bankruptcy

CryptodnesCryptodnes2024/08/27 17:24
By:Cryptodnes

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.

READ MORE:
Bitcoin Millionaires Increase by Over 100% in the Past Year

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.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Stake to earn
CEC, QTLX, GDV and other popular new coins are in hot progress!
Stake now!

You may also like

Ethereum Cannot Recover! What to Expect from ETH Price in the Coming Months? Analysts Point to These Dates for Bottom and Rise!

Analysts said they predict that Ethereum could bottom in the next 2-4 months.

Bitcoinsistemi2024/09/13 21:00

Bill Laboon, Director of Education at Web3 Foundation, on Polkadot’s 1000 Referendums, Centralized Points in Decentralized Polkadot, and Sprinkling B

The Director of Education and Governance Initiatives at the one and only Web3 Foundation arrives to Cryptonews. Bill Laboon is on fire in this episode.

CryptoNews2024/09/13 20:24

The road to the US election is paved with political memecoins — now down 90%

There’s still over 50 days left until the election, or as it should be known, the Superbowl for political memecoins

Blockworks2024/09/13 20:18