Russia’s BitRiver faces bankruptcy over unpaid debts

BitRiver, Russia’s largest bitcoin mining operator, is facing bankruptcy after a court initiated insolvency proceedings over unpaid debts.

Summary

• BitRiver is undergoing bankruptcy proceedings after a court-initiated insolvency due to unpaid service fees.
• Russia’s largest bitcoin mining operator has been severely impacted by mounting power-related debts.
• The company’s future remains uncertain as energy suppliers suspend electricity delivery, leading to reduced mining output.

A Russian arbitration court opened insolvency proceedings after creditors filed claims relating to unpaid service fees, power supply contracts, and data center operations. Creditors argued that repeated payment delays left them with limited recovery options, according to reports from Russian business daily Kommersant.

The court reviewed the claims and approved the start of formal bankruptcy procedures.

As part of the ruling, restrictions were imposed on several BitRiver bank accounts to preserve remaining assets during the legal process. A temporary administrator was appointed to review the company’s financial position and assess liabilities, assets, and possible restructuring options under court supervision.

BitRiver’s operations have been affected by mounting power-related debts. Several energy suppliers reportedly limited or suspended electricity delivery to mining facilities due to unpaid balances, reducing mining output across multiple sites. Some data centers have fully halted operations, while others continue at reduced capacity, according to industry sources cited by Kommersant. The interruptions affected both hosting clients and in-house mining activity.

The company is also facing asset freezes linked to the insolvency case, which have limited its ability to pay contractors and resume normal operations.

Negotiations are underway regarding a possible change of ownership, with court filings indicating discussions focus on debt settlement and continued operation of key facilities. No final agreement has been announced. Several senior managers have reportedly left the company during the insolvency process amid financial stress and ongoing legal reviews.

BitRiver founder Igor Runets has been placed under house arrest on tax-related charges, according to local media. Authorities have not released further details, and the investigation remains active.

BitRiver operates one of the largest bitcoin mining infrastructures in Russia and expanded during periods of low energy costs and favorable climate conditions for mining efficiency. The company works closely with regional power providers and operates large-scale mining facilities.

There is no official confirmation that BitRiver plans to sell 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.

The insolvency process continues under legal oversight as proceedings move forward.