Rhodium Receives Court Approval for Loans in Dollars or Bitcoin
CryptoNewsTerminal Staff31 Aug, 2024
Rhodium Receives Court Approval for Loans in Dollars or Bitcoin
Rhodium, a cryptocurrency mining company, has received court approval to secure loans in either dollars or Bitcoin (BTC). This will allow Rhodium to borrow up to $30 million or 500 BTC from Galaxy Digital, a specialized financial services firm in the cryptocurrency sector. The interest rate for the dollar loan is set at 14.5% per annum, while the BTC loan will accrue interest at a rate of 9.5% per annum. Rhodium and its six subsidiaries had previously filed for Chapter 11 bankruptcy protection in a Texas court. This court approval is a significant development for Rhodium as it allows the company to access financing and continue its operations. The ability to borrow in either dollars or BTC provides Rhodium with flexibility in managing its financial obligations. The cryptocurrency market has experienced significant volatility in recent months, but Rhodium's ability to secure loans in both dollars and BTC demonstrates the continued interest in the cryptocurrency sector from traditional financial institutions.
