Bitcoin mining company Rhodium sells its Temple mine for $40.6 million, co-CEO resigns

Nathan Nichols, co-CEO of bitcoin miner Rhodium Enterprises, has resigned as the company completed the sale of its Temple mine in Texas for $40.6 million in cash. Rhodium announced in an email to investors last week that Nichols had decided to resign, effective after the new year. Just weeks ago, Rhodium creditors filed a lawsuit against him and other co-founders, accusing them of fraud. Rhodium also informed investors that the company had previously received $15 million of a $30 million debtor-in-possession financing from Galaxy Digital. After the sale of the Temple mine was completed on December 18, the company used $16 million of the financing to repay Galaxy debt in full, including fees and interest. In addition, Rhodium said in a press release last Friday that it is ready to resume the mining machine hosting contract at the Riot Rockdale facility after claiming a legal victory against the hosting party. Rhodium's mining machines are mainly hosted at Riot's Whinstone factory in Rockdale, Texas, and the rest are hosted at its proprietary Temple factory. Rhodium filed for Chapter 11 bankruptcy protection in August because its mining business was significantly affected by the deterioration of its relationship with Riot since 2023 and defaulted on loans to investors. The bankruptcy court later approved the auction of the Bitcoin mining assets at the Rhodium Temple factory. Earlier in August, it was reported that Bitcoin mining company Rhodium Enterprises had filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas, disclosing debts of up to $100 million. The document was filed on August 24 and includes six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW. The company has debts between $50 million and $100 million, according to the filing, while its total assets are estimated to be between $100 million and $500 million.