Rhodium Miner Wins Court Approval for $30M or 500 BTC Loan
Rhodium Enterprises, a Bitcoin mining firm, has filed for Chapter 11 bankruptcy in 2024, citing liabilities between $50 million and $100 million. The court has approved an unusual debtor-in-possession financing plan, allowing Rhodium to secure a loan from Galaxy Digital, a blockchain-focused financial services company led by Mike Novogratz. Rhodium can choose between a $30 million loan in U.S. dollars with a 14.5% annual interest rate or 500 Bitcoin with a 9.5% annual interest rate. The loan can be repaid in U.S. dollars based on the market spot prices at the time of repayment.
This decision comes amid the backdrop of a volatile cryptocurrency market, where Bitcoin's price fluctuations can significantly impact loan repayment amounts. Rhodium's bankruptcy filing, which includes six subsidiaries, reveals total assets valued between $100 million and $500 million. The approval of this financing plan underscores the evolving intersection between traditional financial practices and the digital asset sector, highlighting innovative strategies within the cryptocurrency industry.
