New blow for the Bitcoin mining industry. Rhodium Enterprises has just filed for bankruptcy in Texas, revealing debts of up to $100 million. This announcement comes in a challenging context for miners, amid falling prices and rising energy costs.
Bitcoin miner Rhodium files for bankruptcy in Texas
Rhodium Enterprises, a company specializing in bitcoin extraction, has filed for voluntary bankruptcy under Chapter 11 with the Southern District of Texas bankruptcy court. The filing reveals liabilities estimated between $50 and $100 million, while total assets range between $100 and $500 million.
Despite two restructuring proposals, disagreements among stakeholders hastened the default. This procedure will allow Rhodium to reorganize its debts while maintaining its operations.
A sector under pressure
Other major players have already faced the same fate. Core Scientific, one of the largest American miners, filed for bankruptcy at the end of 2022 before restructuring in early 2024. The sector faces a deep crisis, caught between Bitcoin volatility and rising operational costs.
