Russian Court Places BitRiver Parent Under Bankruptcy Observation

A Russian court has placed the parent company of BitRiver, the country’s largest bitcoin mining operator, under formal bankruptcy observation, marking a major escalation in the firm’s financial troubles. The Sverdlovsk Regional Arbitration Court ruled on Jan. 27 to begin monitoring procedures for Fox Group of Companies LLC, which owns 98% of BitRiver Management Company. The move follows a bankruptcy petition filed by Infrastructure of Siberia, a subsidiary of energy conglomerate En+, according to local media reports.

The dispute stems from an equipment supply contract under which Infrastructure of Siberia paid an advance exceeding 700 million rubles, or about $9.2 million. The equipment was never delivered, leading to termination of the contract and a lawsuit. In April 2025, the Arbitration Court of the Irkutsk Region ruled in favor of the En+ subsidiary, but enforcement efforts later found insufficient assets to satisfy the claim. That failure ultimately triggered the bankruptcy filing. As part of the broader legal conflict, BitRiver’s company accounts were frozen, a step lawyers previously warned could effectively paralyze its operations.

Mounting Debts, Management Exodus, and Criminal Charges

The En+ dispute is only part of a wider financial crisis facing BitRiver. The company is also burdened by substantial unpaid electricity bills, with multiple Russian energy providers pursuing claims through the courts. These include demands of 133 million rubles from En+ Sbyt and 640 million rubles from the Irkutsk Electric Grid Company. A subsidiary of Norilsk Nickel has already secured a court award of nearly 169 million rubles for unpaid power costs, while regional Rosseti entities have filed additional lawsuits. Altogether, energy-related claims exceed 940 million rubles, or roughly $12.2 million.

Financial distress quickly translated into operational collapse. Layoffs began in early 2025, salaries were reportedly delayed, and by the end of the year around 80% of BitRiver’s top management had left the company. Offices were closed, and mining equipment was removed from facilities, signaling a rapid dismantling of what was once a dominant player in Russia’s mining sector.

Against this backdrop, negotiations are reportedly underway over a possible change in ownership and the transfer of BitRiver’s remaining assets. The situation is further complicated by legal trouble facing founder and CEO Igor Runets. Russian law enforcement officials confirmed that Runets has been charged under the country’s criminal code for tax evasion, and a Moscow court placed him under house arrest on Jan. 31, though details of the charges have not been made public.

At its peak, BitRiver comprised more than 70 legal entities, operated 15 data centers with total capacity exceeding 533 megawatts, and controlled over half of Russia’s bitcoin mining market. Public data cited in reports indicates the group generated more than 10 billion rubles, or about $132 million, in revenue in 2024, underscoring how rapidly one of the industry’s largest players has unraveled.