Bankrupt Bitcoin miner Rhodium gets court approval for loan in BTC or USD
The company was authorized to choose between receiving a $30 million or a 500 Bitcoin loan from Galaxy Digital.
Bitcoin mining firm Rhodium Enterprises, which recently filed for bankruptcy, has reportedly received court approval to take a loan in either United States dollars or in Bitcoin.
The company was authorized to choose between receiving $30 million or 500 Bitcoin (BTC) from Galaxy Digital, a blockchain firm led by Mike Novogratz. However, the United States dollar loan would have a 14.5% annual interest while the interest rate on the Bitcoin loan is cheaper at 9.5%, according to a Bloomberg report.
With the lender’s approval, Rhodium could repay the Bitcoin loan in US dollars based on the “reasonable published market spot prices” at the time of repayment prior to the due date.
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Author: Pradipta Mukherjee
