Rhodium Encore LLC and its affiliated debtors are in the post-effective-date wind-down of a confirmed Chapter 11 liquidation that took effect January 14, 2026, with the residual docket now dominated by a contested sanctions fight with Midas Green Technologies, LLC. The six-debtor group—an industrial-scale Bitcoin miner operating 227.5 MW across Rockdale and Temple, Texas—filed Chapter 11 petitionsDkt. 1 on August 24, 2024 after a liquidity crisis triggered by the collapse of its relationship with Rockdale power-host Whinstone US, Inc. following Whinstone's acquisition by competitor Riot Blockchain. In his first-day declarationDkt. 35, co-Chief Restructuring Officer David M. Dunn attributed the filing to Whinstone's November 2023 power shutoffs—causing roughly $9 million in lost revenue and equipment damage—and its withholding of about $67 million in asserted energy credits, which left the debtors with only approximately $2.5 million of liquidity at the petition date; those pressures were compounded by the July 30, 2024 maturity of $54 million in secured loans.
The estates stabilized through a combined cash-collateral and secured superpriority postpetition financing package and a sequence of monetizing transactions. The debtors sold the Temple datacenter lease to Green Data, LLC for approximately $55.07 million in November 2024, secured court approval of a $185 million Whinstone settlement in April 2025, and closed Riot Platforms' acquisition of the Rockdale assets that same month. Those proceeds underwrote a liquidating plan: the Second Amended Joint Chapter 11 Plan of Liquidation was confirmed on December 19, 2025 and became effective January 14, 2026, with a stated goal of full creditor recovery including post-petition interest.
Post-effective-date activity now centers on the Wind Down Debtor's effort to recover attorney-fee sanctions from Midas Green over patent infringement claims the debtors characterize as meritless. A supporting declarationDkt. 2428 by the Plan Administrator quantifies aggregate related fees at roughly $6.87 million, spanning the pre-petition patent action through the current sanctions round, while the Wind Down Debtor's sanctions responseDkt. 2427 presses recovery under 35 U.S.C. § 285, 11 U.S.C. § 105, and 28 U.S.C. § 1927. Midas Green's reply in oppositionDkt. 2430 challenges the bankruptcy court's authority to enter final § 285 relief and the adequacy of the Rule 9011 safe-harbor notice. The contested motions, together with a request to end abatement, are set for a June 30, 2026 hearing [Dkt. 2429].
Wind-down administration continues alongside the litigation: the Wind Down Debtor and Genesis Credit Partners, LLC recently stipulatedDkt. 2424 to extend the objection deadline for the Official Committee of Unsecured Creditors' financial-advisor final fee application to July 13, 2026, reflecting the ongoing professional-compensation and distribution work as the estate runs off.
