|

Russia’s Largest Bitcoin Miner BitRiver Faces Bankruptcy Crisis – What Went Wrong?

🚨

BitRiver, Russia’s largest Bitcoin miner, controlling over 50% of the nation’s mining market, is spiraling towards chapter after a courtroom instituted commentary proceedings towards its mother or father firm.

The Sverdlovsk Regional Arbitration Court ruled on January 27 to start monitoring Fox Group of Companies LLC, which owns 98% of Bitriver Management Company, following a $9.2 million debt declare from En+ subsidiary Infrastructure of Siberia.

The disaster marks a dramatic reversal for a corporation that generated over $129 million in revenue final yr and operated 533 MW {of electrical} energy throughout 15 information facilities with greater than 175,000 mining rigs.

Equipment Deal Went Wrong For BitRiver

Infrastructure Siberia filed the chapter petition after BitRiver didn’t ship mining gear regardless of receiving an advance cost exceeding 700 million rubles ($9.15 million).

The firm signed an gear provide contract with Fox Group, however the {hardware} by no means arrived, resulting in the contract’s termination.

Infrastructure Siberia filed a lawsuit demanding a refund of the advance cost plus penalties for late cost. In April 2025, the Arbitration Court of the Irkutsk Region upheld the declare in full.

However, BitRiver’s proprietor and CEO, Igor Runets, disputes the allegations.

According to Forklog, Runets asserts that the gear was delivered, and GC “Fox” is interesting the courtroom’s determination.

“Today they’re working usually, however the shutdowns in December brought about vital losses to a number of group corporations, together with ‘BitRiver Rus’ and ‘Stroyservice Plus,’ which we additionally plan to get better from En+ by authorized proceedings,” Runets said.

Despite Runets’ claims, enforcement proceedings towards Fox Group uncovered no belongings ample to cowl the court-ordered claims, prompting the chapter submitting.

As a part of authorized disputes between En+ buildings and BitRiver corporations, the defendants’ accounts had been frozen, a transfer legal professionals warned might paralyze the whole enterprise operation.

Mining Bans and Energy Disputes Compound Problems

BitRiver’s troubles lengthen far past the En+ debt. Sites situated within the Irkutsk area are now not operational following the introduction of a mining ban within the area’s south.

A 100 MW information middle in Buryatia was by no means commissioned, and a year-round mining ban will take impact within the area beginning in 2026.

Bitcoin Miner BitRiver Bankruptcy - BitRiver's Data Center Equipment Picture
BitRiver information middle gear in Buryatia. | Source: Tadviser

In February 2025, regulation enforcement shut down a 40 MW web site in Ingushetia that had been working regardless of the ban in impact since early 2025.

The firm additionally faces mounting conflicts with vitality suppliers over unpaid electrical energy payments.

Since August 1, 2025, the Faraday Group’s vitality gross sales firm misplaced its proper to take part in electrical energy and capability buying and selling and its wholesale market participant standing.

Courts are considering claims looking for 133 million rubles ($1.74 million) in penalties from En+ Sbyt and 640 million rubles ($8.37 million) from the Irkutsk Electric Grid Company for late cost below vitality provide contracts.

BitRiver CEO Detained as Empire Crumbles

Amid the unfolding disaster, BitRiver founder and CEO Igor Runets was not too long ago detained by Russian authorities and charged with a number of counts of tax evasion.

Runets was charged with three counts associated to the alleged concealment of belongings to evade taxes.

The courtroom ordered Runets positioned below home arrest, along with his authorized workforce given till Wednesday to attraction the ruling.

Runets and BitRiver have confronted stress lately.

The firm was sanctioned by the US Treasury Department in mid-2022 over its ties to Russia following the invasion of Ukraine, limiting entry to Western markets and companions.

In 2023, Japanese monetary group SBI exited its relationship with BitRiver because it withdrew from Russia.

Despite BitRiver’s collapse, demand for mining infrastructure in Russia continues to surge.

According to the System Operator, the capability of miners and information facilities linked to the grid increased 33% in 2025, reaching 4 GW.

Bitcoin Miner BitRiver Bankruptcy - Russia Data Denter Market Data
Source: Modor Intelligence

By 2031, the annual development charge of the info middle market in Russia might attain 14.41%, in line with projections.

The submit Russia’s Largest Bitcoin Miner BitRiver Faces Bankruptcy Crisis – What Went Wrong? appeared first on Cryptonews.

Similar Posts