BitRiver, Russia's Leading Bitcoin Miner, Initiates Bankruptcy Proceedings

BitRiver, the largest Bitcoin mining company in Russia, is facing significant financial and legal obstacles, pushing it toward bankruptcy. The courts have placed its parent entity, Fox Group of Companies, under scrutiny due to mounting debts and unpaid obligations. A major factor in the legal disputes involves Infrastructure of Siberia, which is demanding over $9 million after BitRiver failed to deliver mining equipment as promised. This lawsuit follows an advance payment for hardware that was not supplied, leading to a ruling that favored the energy firm. Restrictions on Operations and Energy Conflicts have severely impacted BitRiver's mining facilities. Operations in Irkutsk and Buryatia remain inactive due to governmental bans, while a 40 MW facility in Ingushetia was shut down due to local regulatory violations. These interruptions have intensified the company’s financial difficulties, exacerbated by numerous claims from energy suppliers over unpaid bills amounting to hundreds of millions of rubles. Some energy providers have lost their trading rights due to these defaults, further limiting BitRiver’s operational capabilities. Leadership challenges have compounded these issues, with founder and CEO Igor Runets currently under house arrest related to allegations of tax evasion, which he and his legal team deny. Despite the struggles of BitRiver, the overall landscape of Russia's crypto mining sector is expanding, with grid-connected mining capacity increasing by 33% in 2025, reaching 4 GW as domestic demand for mining infrastructure grows. Experts suggest that BitRiver's bankruptcy may indicate larger challenges facing major miners in restrictive regions, yet the sector's resilience underscores Russia's significant role in the global Bitcoin mining arena, even as specific companies encounter hardships.