BitRiver, Russia’s largest Bitcoin miner, is on the point of collapse amid mounting monetary and authorized issues. A courtroom positioned mother or father firm Fox Group of Corporations underneath surveillance as money owed and unpaid money owed piled up.
One of many disputes driving the litigation issues infrastructure in Siberia. The corporate is looking for greater than $9 million after BitRiver didn’t ship mining gear. The incident stems from a big advance fee for {hardware} that was by no means equipped. This led to a lawsuit and a judgment in favor of the power firm.
Bans and power disputes
BitRiver’s regional websites have been hit onerous by the operational ban. Mining facilities in Irkutsk and Buryatia stay shut down resulting from authorities rules. Moreover, a 40MW facility within the Republic of Ingushetia was shut down by authorities for violating native rules.
These closures, together with rising disputes over unpaid electrical energy payments, exacerbated the corporate’s monetary pressure. Vitality suppliers have racked up claims totaling a whole bunch of hundreds of thousands of rubles. Some misplaced their buying and selling rights for failing to pay, additional limiting BitRiver’s skill to function.
Management points add to the stress. The corporate’s founder and CEO, Igor Runets, was positioned underneath home arrest on a number of costs of tax evasion. Authorities allege he tried to cover firm property to keep away from paying taxes, an allegation that Lunetz and his legal professionals deny.
BitRiver’s struggles amid sector progress
BitRiver can also be scuffling with worldwide stress. Entry to abroad markets has been minimize off resulting from US sanctions and the withdrawal of accomplice firms. Japanese firms, together with SBI, additionally withdrew from Russia, and monetary help and provide routes have been restricted.
The corporate as soon as managed greater than 175,000 rigs throughout 15 facilities and generated $129 million in income final 12 months. Its fast decline highlights the delicate stability between regulatory, monetary and operational pressures within the Russian mining trade.
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Regardless of BitRiver’s setback, Russia’s crypto mining sector continues to broaden. Grid-connected mining capability elevated by 33% to 4 GW in 2025, reflecting sturdy home demand for industrial mining infrastructure.
Analysts say BitRiver’s chapter might sign broader challenges for giant miners working in extremely regulated areas. Nevertheless, the sector’s continued progress reveals that Russia stays a significant participant in world Bitcoin mining, regardless of the hunch of particular person firms.
