What To Know:
- A Russian court has launched proceedings against BitRiver’s parent, GC Fox, after a $9.2 million debt claim linked to undelivered mining equipment.
- Several data centres are shut, power disputes persist, and most senior executives have exited, while founder Igor Runets is under house arrest.
- Despite the crisis, BitRiver’s remaining facilities are attracting investor interest and could shift Russia’s mining landscape.
Russia’s largest cryptocurrency mining operator, BitRiver, is facing a deepening financial crisis after a regional arbitration court initiated bankruptcy supervision proceedings against its parent company, GC Fox.
The case was brought before the Sverdlovsk Arbitration Court after a claim by Infrastructure of Siberia, a subsidiary of energy group En+. The plaintiff is seeking more than $9.2 million in outstanding debt and penalties. The court filings revealed that the dispute stems from a contract for mining equipment supply valued at roughly 700 million rubles. BitRiver is alleged to have failed to deliver the equipment after receiving an advance payment, which led to enforcement actions and, ultimately, the bankruptcy petition.
Russia’s Crypto Miner BitRiver Slips Toward Insolvency
GC Fox controls 98% of BitRiver’s shares, making the proceedings against the holding company central to the miner’s fate. Court officials reportedly found insufficient assets during enforcement checks, which is a key factor behind the decision to open supervisory procedures. Negotiations are now under way among creditors and potential investors over asset sales and possible changes in ownership.
Operational stress has mounted alongside the legal battle. BitRiver previously operated more than 15 data centres with a combined power capacity exceeding 533 megawatts, hosting an estimated 175,000 mining rigs. Several of these facilities are no longer active. Irkutsk Oblast and Buryatia sites were closed or suspended following tightening of regional limits on mining activities. But a data centre in the Republic of Ingushetia was forcibly shut down even with earlier approvals. Partnerships with Gazprom Neft also ended after contracts were terminated. Payment disputes with electricity suppliers added to the strain on the business.
Industry sources point to delayed settlements and disagreements over power supply terms, problems that are especially damaging in an industry where electricity costs represent the largest operating expense. These pressures spilled into management ranks. By the end of 2025, close to 80% of BitRiver’s senior executives had departed. Founder and chief executive Igor Runets has since been placed under house arrest on allegations of tax evasion, adding another layer of risk for creditors and partners.
Amid the chaos, analysts say that BitRiver’s leftover assets still maintain strategic value. At its peak, the company accounted for more than half of Russia’s total crypto mining capacity, and benefited from access to cheap power and cold climates. Market participants say discussions are ongoing to acquire surviving facilities. This in turn, could change the balance of power within the domestic mining sector rather than eliminate it outright.
Profitability in the BitRiver episode depends on a narrow set of variables, including Bitcoin prices, network difficulty, and energy costs. Volatility in digital asset markets over the past year has coincided with rising operational expenses.This has left heavily leveraged operators exposed. The involvement of En+, which is a major energy producer, is a reflection of how closely mining economics are linked to traditional power infrastructure. The implications extend beyond Russia.
A prolonged shutdown of BitRiver’s computing capacity could alter global hash rate distribution, benefiting miners in jurisdictions with more stable regulatory and energy frameworks. At the same time, a forced liquidation would likely send large volumes of advanced mining hardware onto secondary markets, weighing on equipment prices and creating acquisition opportunities for better-capitalized rivals.
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