Russia’s Largest Bitcoin Miner BitRiver Enters Bankruptcy Proceedings: Report
BitRiver, Russia’s largest Bitcoin miner, is on the snapping point amid mounting monetary and authorized issues. Courts have positioned its father or mother firm, Fox Group of Companies, below statement as money owed and unpaid obligations pile up.
One of the disputes driving the court docket motion includes Infrastructure of Siberia. The firm is seeking greater than $9 million after BitRiver did not ship mining tools. The case stems from a big advance cost for {hardware} that was by no means equipped. This led to a lawsuit and a ruling in favor of the vitality agency.
Operational Bans and Energy Disputes
Operational bans have hit BitRiver’s regional websites onerous. Mining facilities in Irkutsk and Buryatia stay offline because of authorities restrictions. In addition, a 40 MW facility in Ingushetia was shut down by authorities for violating native guidelines.
These shutdowns have worsened the corporate’s monetary pressure, coming alongside rising disputes over unpaid electrical energy payments. Energy suppliers have filed claims totaling lots of of tens of millions of rubles. Some additionally misplaced buying and selling rights after nonpayment, additional limiting BitRiver’s capacity to function.
Leadership points have added to the strain. The firm’s founder and CEO, Igor Runets, was positioned below home arrest in reference to a number of tax evasion expenses. Authorities allege that he tried to hide firm belongings to keep away from paying taxes, a declare that Runets and his authorized workforce have denied.
BitRiver’s Struggles Amid Sector Growth
BitRiver has additionally struggled below worldwide strain. US sanctions and accomplice exits have minimize entry to overseas markets. Japanese companies, together with SBI, additionally withdrew from Russia, limiting monetary help and provide channels.
The firm as soon as managed over 175,000 rigs throughout 15 facilities, producing $129 million in income final yr. Its fast decline highlights the delicate stability between regulatory, monetary, and operational pressures in Russia’s mining business.
Despite BitRiver’s setbacks, Russia’s crypto mining sector continues to broaden. Grid-connected mining capability rose 33% in 2025 to 4 GW, reflecting robust home demand for industrial mining infrastructure.
Analysts say BitRiver’s chapter might sign broader challenges for large-scale miners working in restrictive areas. Yet the sector’s continued development reveals that Russia stays a serious participant in world Bitcoin mining, at the same time as particular person corporations falter.
The submit Russia’s Largest Bitcoin Miner BitRiver Enters Bankruptcy Proceedings: Report appeared first on CryptoPotato.
