Bitcoin Miner Rhodium Sells Mining Facility for $40.6M Amid Bankruptcy

Bitcoin mining company Rhodium has sold its Temple site in Texas for $40.6 million in cash as part of its bankruptcy recovery efforts. The company filed for Chapter 11 bankruptcy protection in August due to financial struggles, including unpaid debts and operational disputes.

Rhodium Sells Temple Site

The Temple site, based in Texas and recognized for its power capacity, was purchased by its landlord, Temple Green Data LLC. The sale included the site’s infrastructure and power agreements but excluded the Bitcoin mining equipment. Rhodium used $16 million from the sale to fully repay a $15 million loan, including fees, to Galaxy Digital.

Nathan Nichols, the company’s co-CEO, announced his resignation immediately after the new year began. His departure follows a lawsuit in which creditors have accused him and other founding members of fraud.

Rhodium has been operating the Temple site since 2021, gradually increasing its power capacity to 225 MW and achieving a mining power of 1.1 EH/s. However, the company faced growing issues with Riot and others, leading to its bankruptcy and the eventual sale of its assets. The sale marks a crucial step in Rhodium’s efforts to stabilize operations and repay debts. Since the firm did not sell its mining rigs, it likely intends to continue mining activities at other locations.

Other Bitcoin Miners Expand

While Rhodium is facing bankruptcy, other Bitcoin miners are expanding their businesses. Two months ago, BitFuFu acquired a rival mining facility in Ethiopia. Recently, Bitcoin mining firms like MARA Holdings, Riot Platforms, Hut 8, and Bitfarms have committed to frequent BTC acquisitions to boost their holdings as the apex coin soars.

Earlier this month, MARA Holdings bought $1.53 billion worth of BTC, taking its total holdings to 44,394 BTC. Riot Platforms follows with a total BTC stash of 17,429 BTC. Hut 8, on its part, holds over 10,000 BTC, making it the third-largest BTC holder among mining firms.