BitRiver, Russia’s largest Bitcoin miner, is on the brink of collapse amid mounting financial and legal problems. A court placed parent company Fox Group of Companies under surveillance as debts and unpaid debts piled up.
One of the disputes driving the litigation concerns infrastructure in Siberia. The company is seeking more than $9 million after BitRiver failed to deliver mining equipment. The incident stems from a large advance payment for hardware that was never supplied. This led to a lawsuit and a judgment in favor of the energy company.
Bans and energy disputes
BitRiver’s regional sites have been hit hard by the operational ban. Mining centers in Irkutsk and Buryatia remain shut down due to government regulations. Additionally, a 40MW facility in the Republic of Ingushetia was shut down by authorities for violating local regulations.
These closures, along with increasing disputes over unpaid electricity bills, exacerbated the company’s financial strain. Energy suppliers have racked up claims totaling hundreds of millions of rubles. Some lost their trading rights for failing to pay, further limiting BitRiver’s ability to operate.
Leadership issues add to the pressure. The company’s founder and CEO, Igor Runets, was placed under house arrest on multiple charges of tax evasion. Authorities allege he tried to hide company assets to avoid paying taxes, an allegation that Lunetz and his lawyers deny.
BitRiver’s struggles amid sector growth
BitRiver is also struggling with international pressure. Access to overseas markets has been cut off due to US sanctions and the withdrawal of partner companies. Japanese companies, including SBI, also withdrew from Russia, and financial aid and supply routes were restricted.
The company once managed more than 175,000 rigs across 15 centers and generated $129 million in revenue last year. Its rapid decline highlights the fragile balance between regulatory, financial and operational pressures in the Russian mining industry.
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Despite BitRiver’s setback, Russia’s crypto mining sector continues to expand. Grid-connected mining capacity increased by 33% to 4 GW in 2025, reflecting strong domestic demand for industrial mining infrastructure.
Analysts say BitRiver’s bankruptcy could signal broader challenges for large miners operating in highly regulated regions. However, the sector’s continued growth shows that Russia remains a major player in global Bitcoin mining, despite the slump of individual companies.
