Russia’s largest Bitcoin miner, BitRiver, is on the brink of bankruptcy after a court launched insolvency proceedings over unpaid debts totaling $9.2 million (700 million rubles).
According to the report from Feb 2, the Sverdlovsk Regional Arbitration Court initiated observation proceedings against Fox Group of Companies LLC, which owns 98% of BitRiver Management Company, following a petition from En+’s Infrastructure of Siberia.
The legal dispute stems from an equipment supply contract. Fox Group allegedly failed to deliver pre-paid mining equipment, leading Infrastructure Siberia to demand repayment and penalties.
An April 2025 ruling by the Arbitration Court of the Irkutsk Region upheld the claim, but enforcement found insufficient assets, prompting the bankruptcy filing.
BitRiver Data Centers Face Regional Shutdowns
BitRiver has 15 data centers with a total capacity of 533 MW, housing more than 175,000 mining rigs. Irkutsk region’s mining rigs are no longer in operation due to the ban in the region, while a 100 MW facility in Buryatia has not yet started operations, as it is set to be banned throughout the year from 2026.
The 40 MW facility in Ingushetia was closed by law enforcement in February 2025 for continuing operations despite the ban. The partner platforms of Gazprom Neft have also shut down due to contract terminations. Financial difficulties include unpaid electricity bills.
En+ Sbyt and the Irkutsk Electric Grid Company are claiming more than 770 million rubles in fines and arrears, while NTEK, a Norilsk Nickel subsidiary, has recovered 168.7 million rubles in debts. Energy disputes and blocked accounts have led to paralysis.
Founder Igor Runets Placed Under House Arrest
Since the early part of 2025, BitRiver has experienced layoffs, delayed employee salaries, and the resignation of the top management, with about 80% of the executives leaving by the end of the year.
Offices have been closed, and equipment and documents have been taken away. The founder and CEO, Igor Runets, was put under house arrest for tax evasion on January 31.
Talks are currently underway regarding possible changes in ownership and the transfer of assets. It is worth noting that BitRiver at one time dominated more than 50% of the Russian Bitcoin mining market, which makes its infrastructure attractive to investors and creditors.
The situation of the company draws attention to the challenges faced by large-scale mining enterprises in Russia.
Also Read: Bitcoin ASIC Miners Prices Per Terahash Hit All Time Low Of 80%
