Bankrupt Bitcoin miner Rhodium Enterprises has received court approval to secure a loan in either U.S. dollars or Bitcoin, allowing the company to choose between a $30 million loan or 500 Bitcoin from Galaxy Digital.

This unique debtor-in-possession financing option comes as Rhodium faces mounting financial difficulties, having recently filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The company disclosed liabilities of up to $100 million, with total assets valued between $100 million and $500 million​

The terms of the loan provide Rhodium with the flexibility to repay in U.S. dollars based on market spot prices at the time of repayment.

While the U.S. dollar loan carries a 14.5% annual interest rate, the Bitcoin loan offers a lower interest rate of 9.5%. The approval for this type of financing is unusual within the cryptocurrency sector due to the volatility of Bitcoin prices, which makes it challenging to predict the total repayment amount

Rhodium’s bankruptcy filing includes six subsidiaries and reflects the broader financial pressure facing Bitcoin mining firms.

The recent Bitcoin halving and subsequent reduction in mining rewards have added to the financial strain on these companies, pushing some, like Rhodium, to seek innovative financing solutions to continue operations​.

Bitcoin Versus is not a financial advisor. This media platform reports on financial subjects purely for educational and entertainment purposes only. Do your own due diligence and contact a professional financial advisor for any advice on how to invest your money.