Bitcoin Miner Revenue Hits Record Low, Is It No Longer Selling?

Citing Cointelegraph, Monday (2/9/2024) the company was given the authority to choose between receiving USD 30 million (Rp. 4.2 trillion) or 500 Bitcoin from Galaxy Digital, a blockchain company led by Mike Novogratz. However, the US dollar loan will have an annual interest of 14.5% while the Bitcoin loan interest rate is cheaper at 9.5%, according to a Bloomberg report.

With the lender’s consent, Rhodium may repay the Bitcoin loan in USD based on the published fair market spot price at the time of repayment prior to maturity.

The approval is unusual for bankruptcy financing in the crypto sector because of Bitcoin’s price volatility, which makes it difficult to predict the total loan repayment amount, regardless of interest rates. Of note, Bitcoin’s own price has fallen nearly 11% in the past month, according to CoinMarketCap data.

On August 24, 2024, Rhodium Enterprises filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas, disclosing debt obligations of up to USD 100 million (Rp. 1.5 trillion).

The filing covers six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW.

According to the documents, the company’s debts range between USD 50 million and USD 100 million, while its total assets are worth between USD 100 million (Rp. 1.5 trillion) and USD 500 million (Rp. 7.7 trillion).

By filing for Chapter 11 bankruptcy voluntarily, a company can reorganize its debts while continuing to operate. This allows it to negotiate a revised repayment plan with new terms.

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