BitRiver, Russia’s largest bitcoin mining company, is now facing bankruptcy after a court stepped in over unpaid debts.
A Russian arbitration court has officially opened insolvency proceedings against the company. Creditors say BitRiver kept delaying payments for basic services like power supply, data center operations, and service fees. After waiting too long, they decided court action was the only option left, according to reports from Russian business newspaper Kommersant.
The court reviewed the claims and agreed to move forward with the bankruptcy process. As part of the decision, several of BitRiver’s bank accounts were restricted to protect what assets are still left. A temporary administrator has been appointed to look closely at the company’s finances. This person will review debts, assets, and whether the business can be restructured or saved under court supervision.
One of the biggest problems is unpaid electricity bills. BitRiver’s mining operations rely heavily on cheap and steady power, but mounting energy debts have caused serious trouble. Several power suppliers have reportedly reduced or fully stopped electricity delivery to BitRiver’s mining sites. Because of this, mining output has dropped across multiple locations. Some data centers have shut down completely, while others are running at much lower capacity. Both BitRiver’s own mining and the services it provides to hosting clients have been affected.
On top of that, asset freezes linked to the insolvency case have made things worse. These restrictions have limited BitRiver’s ability to pay contractors or bring operations back to normal.
There are talks about a possible change in ownership. Court filings show that discussions are happening around settling debts and keeping key facilities running. However, no final deal has been confirmed yet. During this stressful period, several senior managers have reportedly left the company as legal and financial pressure continues.
BitRiver’s founder, Igor Runets, has reportedly been placed under house arrest on tax-related charges, according to local media. Authorities have not shared many details, and the investigation is still ongoing.
BitRiver built one of the largest bitcoin mining setups in Russia by taking advantage of low energy costs and cold weather, which helps keep mining equipment cool. The company worked closely with regional power providers and expanded quickly during favorable conditions.
So far, there is no official confirmation that BitRiver plans to sell any bitcoin it holds. Court documents mainly focus on recovering debts, valuing assets, and handling creditor claims. Any sale of digital assets would need approval from the court-appointed administrator.
For now, the bankruptcy process continues under court control, and BitRiver’s future remains uncertain as the legal proceedings move forward.
