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BitRiver, the leading Bitcoin miner in Russia, which accounts for more than 50% of the country’s mining sector, is on the brink of bankruptcy following a court’s decision to initiate observation proceedings against its parent company.
On January 27, the Sverdlovsk Regional Arbitration Court decided to monitor Fox Group of Companies LLC, which holds 98% of Bitriver Management Company, due to a $9.2 million debt claim from En+ subsidiary Infrastructure of Siberia.
This situation represents a stark turnaround for a firm that recorded over $129 million in revenue last year and operated 533 MW of electrical power across 15 data centers housing more than 175,000 mining rigs.
BREAKING: RUSSIA’S BIGGEST BITCOIN MINER FACES BANKRUPTCY – POSSIBLE SELL OFF?
BitRiver, Russia’s largest $BTC mining operator, is facing bankruptcy, per Kommersant.
The insolvency proceedings were triggered by unpaid debts exceeding $9 million.
Accounts have been frozen… https://t.co/89thhNcl9V pic.twitter.com/cEWzTQoakF— BSCN (@BSCNews) February 2, 2026
Equipment Deal Went Wrong For BitRiver
Infrastructure Siberia initiated the bankruptcy petition after BitRiver did not deliver mining equipment, despite receiving an advance payment of over 700 million rubles ($9.15 million).
The firm entered into a contract with Fox Group for equipment supply, but the machinery never arrived, resulting in the termination of the contract.
Infrastructure Siberia subsequently filed a lawsuit for the return of the advance payment along with penalties for late payment. In April 2025, the Arbitration Court of the Irkutsk Region fully supported the claim.
However, Igor Runets, the owner and CEO of BitRiver, contests the allegations.
As reported by Forklog, Runets insists that the equipment was delivered, and GC “Fox” is appealing the ruling of the court.
“Currently, they are operating without issues, but the shutdowns in December led to substantial losses for several group companies, including ‘BitRiver Rus’ and ‘Stroyservice Plus,’ which we also aim to recover from En+ through legal channels,” stated Runets.
Despite Runets’ assertions, enforcement actions against Fox Group revealed no assets adequate to satisfy the court-mandated claims, leading to the bankruptcy filing.
In the context of the legal battles between En+ entities and BitRiver firms, the defendants’ accounts were frozen, an action that legal experts warned could hinder the entire business operation.
Mining Bans and Energy Disputes Compound Problems
BitRiver’s difficulties extend beyond the En+ debt. Operations in the Irkutsk region have ceased following the implementation of a mining ban in the southern part of the region.
A 100 MW data center in Buryatia was never brought online, and a year-round mining prohibition will commence in the area starting in 2026.
BitRiver data center equipment in Buryatia. | Source: Tadviser
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In February 2025, authorities shut down a 40 MW facility in Ingushetia that had been operating despite the ban implemented since early 2025.
The firm is also facing escalating disputes with energy providers over unpaid electricity invoices.
As of August 1, 2025, the Faraday Group’s energy sales division lost its eligibility to participate in electricity and capacity trading, along with its status as a wholesale market participant.
Courts are currently evaluating claims seeking 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 overdue payments under energy supply agreements.
BitRiver CEO Detained as Empire Crumbles
Amid the ongoing crisis, BitRiver’s founder and CEO Igor Runets was recently apprehended by Russian authorities and charged with multiple counts of tax evasion.
Runets faces three charges related to the alleged concealment of assets to avoid taxes.
BitRiver founder and CEO Igor Runets has been detained in Russia and placed under house arrest on multiple tax evasion charges.#Bitriver #Bitcoinhttps://t.co/kauFfMaDwu
— Cryptonews.com (@cryptonews) February 2, 2026
The court has mandated that Runets be placed under house arrest, granting his legal team until Wednesday to contest the decision.
Runets and BitRiver have encountered increasing pressure in recent years.
The company faced sanctions from the US Treasury Department in mid-2022 due to its connections to Russia following the invasion of Ukraine, limiting access to Western markets and partners.
In 2023, Japanese financial group SBI terminated its partnership with BitRiver as it exited Russia.
Despite the decline of BitRiver, the demand for mining infrastructure in Russia continues to rise.
According to the System Operator, the capacity of miners and data centers linked to the grid surged by 33% in 2025, reaching 4 GW.
Source: Modor Intelligence
By 2031, the annual growth rate of the data center market in Russia could reach 14.41%, based on forecasts.
The post Russia’s Largest Bitcoin Miner BitRiver Faces Bankruptcy Crisis – What Went Wrong? appeared first on Cryptonews.
