Rhodium Gets Approval for Rare Bitcoin-Based Bankruptcy Loan
- Galaxy Digital offered a loan to the bankrupt Bitcoin miner
- Rhodium and affiliates filed for Chapter 11 in Texas in August
A worker installs a row of Bitcoin mining machine.
Photographer: Mark Felix/AFP/Getty ImagesThis article is for subscribers only.
Bankrupt crypto miner Rhodium Encore LLC received court approval for an unusual debtor-in-possession financing plan on Friday that offers options to borrow in either US dollars or Bitcoin.
Galaxy Digital, the blockchain firm run by Mike Novogratz, has offered to provide either $30 million or 500 Bitcoin to fund Rhodium’s Chapter 11 bankruptcy, according to . The dollar loan has a 14.5% annual interest rate, while the Bitcoin loan bears a 9.5% interest rate.