September 1, 2024
Crypto miner Rhodium has received court approval for a unique debtor-in-possession financing plan, allowing it to borrow in either US dollars or Bitcoin. According to Bloomberg, Texas has approved this unconventional financing for Rhodium Enterprises, which is under Chapter 11 bankruptcy. This innovative structure lets Rhodium get a cash advance in USD or BTC to address its financial issues.
Project | Latest Raise | Latest Raise Date | Stage | Lead Investor | Category |
Rhodium | $30M | September 1, 2024 | Financing Plan | Galaxy Digital | Bitcoin, Mining |
The funding comes from Galaxy Digital, a blockchain company founded by Mike Novogratz. Rhodium can borrow $30 million at an annual interest rate of 14.5% or 500 Bitcoin at an interest rate of 9.5%. Importantly, Rhodium can choose to repay the loan in US dollars based on the current Bitcoin exchange rate at the time of repayment, so it is not obligated to repay in Bitcoin.
About Rhodium
Rhodium Enterprises is a Texas-based company that focuses on large-scale Bitcoin mining. They use advanced liquid-cooling technology and proprietary software to make their mining operations efficient and sustainable. Their goal is to be the most cost-effective and environmentally friendly Bitcoin producer in the industry.
Website: https://rhdm.com/
About Investor
Investor: Galaxy Digital
Galaxy is a leader in digital assets and blockchain technology. They provide a range of services that connect financial expertise with technological innovation. Galaxy helps institutions navigate the digital economy by offering solutions that blend Silicon Valley’s agility with Wall Street’s sophistication.
Location: New York City
Website: https://www.galaxy.com/
A central focus of investor activity in the cryptocurrency space is the evaluation of new crypto projects to invest in, particularly those with huge potential. This blog provides insight into what new ventures are benefiting from venture capital support (VC funding in crypto). These new crypto projects, funded by professional investors, can dictate the next narrative in crypto and the next big crypto movers.
Comments