Bitcoin mining company Rhodium has filed for bankruptcy in a Texas court in the United States

ChainCatcher news, according to Cointelegraph, Bitcoin mining company Rhodium Enterprises has voluntarily filed for Chapter 11 bankruptcy in the Southern District of Texas, with liabilities of up to $100 million. The filing was submitted on August 24 and includes six subsidiaries—Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. According to the document, the company's debts range from $50 million to $100 million, while its total assets are estimated to be between $100 million and $500 million.

Earlier reports indicated that Rhodium's affiliated companies had encountered financial difficulties, and Rhodium's bankruptcy is one of them. It was reported that Rhodium Enterprises, which owns Rhodium Encore and Rhodium 2.0, failed to repay a $54 million loan to creditors in July. In 2021, Rhodium raised a $78 million loan for its subsidiaries.

It was reported that the company proposed two debt restructuring plans before the deadline, but disagreements among shareholders led to a default. Under Chapter 11 voluntary bankruptcy, the company will be able to restructure its debts while continuing operations, allowing it to negotiate a repayment plan based on revised terms.