Core Points - Rhodium, a Texas-based Bitcoin mining firm, filed for Chapter 11 bankruptcy on August 24, 2024, including six subsidiaries in the filing [1] - The court ruled that holders of Simple Agreements for Future Equity (SAFEs) are to be treated as creditors, allowing them to claim cash-out payments [5] Group 1: Bankruptcy Filing - Rhodium filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, listing six subsidiaries [1] - The filing indicates significant financial distress within the company and its affiliates [1] Group 2: SAFE Agreements - Investors filed claims worth over $70 million based on SAFEs issued by Rhodium to raise capital in 2021 [2] - SAFEs are designed to convert into equity during an IPO or provide cash-out options during liquidity events [3] - The court's ruling established that SAFE agreements create a claim to cash-out amounts, which is prioritized above equity but below general unsecured creditors [5] Group 3: Legal Proceedings - The debtors argued that SAFE holders should not be considered creditors, as SAFEs are contingent equity instruments [4] - SAFE investors, including Celsius Holdings, contended that their agreements entitled them to cash-out payments due to the liquidity event [4]