BitRiver, Russia’s biggest Bitcoin mining company, is facing bankruptcy amid mounting financial and legal troubles. Its parent company, Fox Group of Companies, has been placed under court observation as debts and unpaid obligations accumulate.
One key dispute involves Infrastructure of Siberia, which is seeking more than $9 million after BitRiver failed to deliver mining equipment despite receiving a large advance payment. A court ruled in favor of the energy firm.
Operational and Energy Challenges
Government restrictions have forced several of BitRiver’s mining sites to shut down. Centers in Irkutsk and Buryatia remain offline, while a 40 MW facility in Ingushetia was closed for violating local regulations. Rising unpaid electricity bills have led energy suppliers to file claims worth hundreds of millions of rubles, further limiting the company’s operations.
Leadership issues have compounded the crisis. Founder and CEO Igor Runets was placed under house arrest over multiple tax evasion charges, with authorities claiming he attempted to conceal company assets. Runets and his legal team deny these allegations.
Sector Pressures and Global Impact
International pressures have also hurt BitRiver. US sanctions and the withdrawal of foreign partners, including Japanese firms like SBI, have reduced access to global markets and supply channels. At its peak, BitRiver managed over 175,000 rigs across 15 centers and generated $129 million in revenue last year, highlighting the rapid scale of its decline.
Despite BitRiver’s collapse, Russia’s crypto mining industry continues to grow. Grid-connected mining capacity increased 33 percent in 2025 to 4 GW, showing strong domestic demand. Analysts suggest that while BitRiver’s bankruptcy highlights the risks of operating in restrictive regions, Russia remains a significant player in global Bitcoin mining.
