Rhodium Enterprises, a Bitcoin mining firm, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. Through this filing, the company disclosed debts of up to $100 million.

The filing, submitted on August 24, also includes six subsidiaries—Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW—dragging them into the bankruptcy process as well.

Documents reveal that the company’s debts range between $50 million and $100 million, while its total assets are estimated to be between $100 million and $500 million.

Rhodium’s bankruptcy filing follows a series of financial struggles. The company’s subsidiaries, Rhodium Encore and Rhodium 2.0, were unable to repay a $54 million loan to creditors in July. Back in 2021, Rhodium had secured $78 million in loans for these subsidiaries.

Despite two restructuring proposals being presented before the final payment date, disagreements among stakeholders led to a default.

Under the voluntary Chapter 11 bankruptcy process, the company now has the opportunity to reorganize its debts, allowing it to continue operations while renegotiating its debt repayment plan under new terms.

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