Russia’s Largest Bitcoin Miner BitRiver Enters Bankruptcy Proceedings: Report

BitRiver, Russia’s largest Bitcoin miner, is on the verge of collapse amid mounting financial and legal problems. Courts have placed its parent company, Fox Group of Companies, under observation as debts and unpaid obligations pile up.

One of the disputes driving the court action involves Infrastructure of Siberia. The company is seeking more than $9 million after BitRiver failed to deliver mining equipment. The case stems from a large advance payment for hardware that was never supplied. This led to a lawsuit and a ruling in favor of the energy firm.

Operational Bans and Energy Disputes

Operational bans have hit BitRiver’s regional sites hard. Mining centers in Irkutsk and Buryatia remain offline due to government restrictions. In addition, a 40 MW facility in Ingushetia was shut down by authorities for violating local rules.

These shutdowns have worsened the company’s financial strain, coming alongside rising disputes over unpaid electricity bills. Energy suppliers have filed claims totaling hundreds of millions of rubles. Some also lost trading rights after nonpayment, further restricting BitRiver’s ability to operate.

Leadership issues have added to the pressure. The company’s founder and CEO, Igor Runets, was placed under house arrest in connection with multiple tax evasion charges. Authorities allege that he attempted to conceal company assets to avoid paying taxes, a claim that Runets and his legal team have denied.

BitRiver’s Struggles Amid Sector Growth

BitRiver has also struggled under international pressure. US sanctions and partner exits have cut access to foreign markets. Japanese firms, including SBI, also withdrew from Russia, limiting financial support and supply channels.

The company once managed over 175,000 rigs across 15 centers, generating $129 million in revenue last year. Its rapid decline highlights the fragile balance between regulatory, financial, and operational pressures in Russia’s mining industry.

Despite BitRiver’s setbacks, Russia’s crypto mining sector continues to expand. Grid-connected mining capacity rose 33% in 2025 to 4 GW, reflecting strong domestic demand for industrial mining infrastructure.

Analysts say BitRiver’s bankruptcy could signal broader challenges for large-scale miners operating in restrictive regions. Yet the sector’s continued growth shows that Russia remains a major player in global Bitcoin mining, even as individual companies falter.

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