By BitRiver, Russia’s largest bitcoin mining operator, has entered formal insolvency proceedings after a Russian arbitration court accepted creditor claims linked to unpaid debts.
The case marks one of the most significant financial failures in the country’s crypto mining industry and highlights the pressure facing energy-intensive operators as costs rise and access to capital tightens.
The court moved to open bankruptcy proceedings after reviewing multiple claims from creditors tied to unpaid service fees, power supply contracts, and data centre operations.
According to reports from Russian business daily Kommersant, creditors argued that repeated payment delays had left them with few options to recover outstanding balances.
After assessing the filings, the court approved the launch of formal insolvency procedures.
As part of the ruling, restrictions were imposed on several BitRiver bank accounts to secure remaining assets while the case proceeds.
The court also appointed a temporary administrator tasked with reviewing the company’s financial position, including liabilities, assets, and any potential restructuring paths under judicial supervision.
🚨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 of more than $9 million. Accounts have been frozen
Energy debts disrupt operations
Mounting power-related debts have played a central role in BitRiver’s financial deterioration.
Several regional energy suppliers reportedly limited or suspended electricity deliveries to BitRiver-linked mining facilities after unpaid balances accumulated.
These actions reduced mining output across multiple sites and disrupted both hosting clients and BitRiver’s own mining operations.
Industry sources cited by Kommersant said some data centres have fully halted activity, while others continue to operate at reduced capacity.
The interruptions have affected equipment utilisation and revenue generation, adding further strain as the insolvency process unfolds.
The asset freezes imposed under the court order have also constrained the company’s ability to pay contractors and restore normal operations.
With access to funds restricted, routine payments linked to maintenance, staffing, and energy supply have become increasingly difficult, reinforcing the operational slowdown already triggered by power disruptions.
Ownership talks and management exits
Court filings indicate that negotiations are underway regarding a possible change of ownership.
Discussions reportedly centre on settling outstanding debts while maintaining operations at key facilities.
No agreement has been finalised, and there has been no official announcement outlining a clear path forward for the business.
The insolvency process has coincided with changes at the management level.
Several senior managers have reportedly left the company amid mounting financial pressure and ongoing legal reviews.
These departures have added uncertainty around governance and day-to-day decision-making during a period when the company is under close court supervision.
Any restructuring or ownership transfer would require approval within the insolvency framework, with the temporary administrator overseeing negotiations to ensure creditor interests are prioritised.
Legal scrutiny and asset questions
BitRiver’s founder, Igor Runets, has been placed under house arrest on tax-related charges, according to local media reports.
Authorities have not released detailed information, and the investigation remains ongoing.
The legal proceedings involving the founder run alongside the insolvency case but add another layer of complexity to the company’s situation.
BitRiver built one of the largest bitcoin mining infrastructures in Russia by leveraging low energy costs and climate conditions that support mining efficiency.
The company has long worked closely with regional power providers and operated large-scale facilities designed to host both in-house mining and third-party clients.
There is no official confirmation that BitRiver intends to sell any bitcoin holdings.
Court documents focus on debt recovery, asset valuation, and creditor claims.
Any sale of digital assets would require approval from the court-appointed administrator as part of the insolvency process.
The bankruptcy proceedings continue under legal oversight as the administrator assesses options and creditors pursue recovery.
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