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

What Happened

Infrastructure Siberia filed the bankruptcy petition after BitRiver failed to deliver mining equipment despite receiving an advance payment exceeding 700 million rubles ($9.15 million).

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

BitRiver’s troubles extend far beyond the En+ debt. Sites located in the Irkutsk region are no longer operational following the introduction of a mining ban in the region’s south.

Market Context

BitRiver, Russia’s largest Bitcoin miner, controlling over 50% of the nation’s mining market, is spiraling toward bankruptcy after a court instituted observation proceedings against its parent company.

Since August 1, 2025, the Faraday Group’s energy sales company lost its right to participate in electricity and capacity trading and its wholesale market participant status.

Why It Matters

As part of legal disputes between En+ structures and BitRiver companies, the defendants’ accounts were frozen, a move lawyers warned could paralyze the entire business operation.

Details

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

The crisis marks a dramatic reversal for a company that generated over $129 million in revenue last year and operated 533 MW of electrical power across 15 data centers with more than 175,000 mining rigs.

Equipment Deal Went Wrong For BitRiver

The company signed an equipment supply contract with Fox Group, but the hardware never arrived, leading to the contract’s termination.

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

According to Forklog, Runets asserts that the equipment was delivered, and GC “Fox” is appealing the court’s decision.

“Today they are operating normally, but the shutdowns in December caused significant losses to several group companies, including ‘BitRiver Rus’ and ‘Stroyservice Plus,’ which we also plan to recover from En+ through legal proceedings,” Runets stated.

Despite Runets’ claims, enforcement proceedings against Fox Group uncovered no assets sufficient to cover the court-ordered claims, prompting the bankruptcy filing.

Mining Bans and Energy Disputes Compound Problems

A 100 MW data center in Buryatia was never commissioned, and a year-round mining ban will take effect in the region starting in 2026.

In February 2025, law enforcement shut down a 40 MW site in Ingushetia that had been operating despite the ban in effect since early 2025.

The company also faces mounting conflicts with energy suppliers over unpaid electricity bills.

Courts are considering 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 late payment under energy supply contracts.

BitRiver CEO Detained as Empire Crumbles

Amid the unfolding crisis, BitRiver founder and CEO Igor Runets was recently detained by Russian authorities and charged with multiple counts of tax evasion.

Runets was charged with three counts related to the alleged concealment of assets to evade taxes.

The court ordered Runets placed under house arrest, with his legal team given until Wednesday to appeal the ruling.

Runets and BitRiver have faced pressure in recent years.