Rhodium Enterprises, a Bitcoin mining company that recently filed for bankruptcy, has received court approval to secure a $30 million loan in fiat or Bitcoin.
Loan Approval
Rhodium Enterprises has the option to borrow $30 million or 500 BTC from Galaxy Digital. This decision was approved by the court following the company's bankruptcy filing.
Loan Terms
The U.S. dollar loan includes a 14.5% annual interest rate, while the Bitcoin loan offers a lower interest rate of 9.5%. With the lender’s consent, Rhodium can repay the loan in BTC in the form of U.S. dollars using 'reasonable published market spot prices' at the time of repayment.
Bankruptcy Context
On August 24, Rhodium Enterprises voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, citing liabilities of up to $100 million. The company’s total assets are estimated at $100-$500 million, including six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW.
By filing for Chapter 11 bankruptcy, Rhodium Enterprises can restructure its debts while continuing operations, negotiating a revised repayment plan on new terms.
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