Russia’s leading cryptocurrency mining firm, BitRiver, is on the brink of bankruptcy after the Sverdlovsk Arbitration Court initiated a supervisory procedure against its parent company, GC Fox, which owns 98% of BitRiver.
Court moves and ownership uncertainty
The proceedings follow a $9.2 million claim from En+’s subsidiary, Infrastructure of Siberia, over undelivered mining equipment and unpaid penalties. Following the discovery of insufficient assets during enforcement proceedings, the court has accepted the bankruptcy petition, prompting discussions of potential ownership changes for the embattled operator.
Operational challenges and market impact
BitRiver operates over 15 data centres with a combined capacity exceeding 533 MW, hosting more than 175,000 mining rigs. Many facilities, particularly in Irkutsk and Buryatia, are now inactive due to regional mining bans, while a site in Ingushetia was forcibly closed despite prior authorization. Partner sites with Gazprom Neft were also shut after contracts were terminated. Payment issues with electricity providers and disputes over power supply contracts further strained operations, contributing to management resignations and office closures. By late 2025, around 80% of BitRiver’s top executives had left, with founder Igor Runets now under house arrest for alleged tax evasion.
Analysts say the company’s assets remain valuable, given BitRiver’s former dominance in Russia’s mining sector, which accounted for over 50% of local operations. Investors and creditors are reportedly in negotiations to acquire the remaining facilities, potentially reshaping the Russian crypto-mining landscape. Despite the turmoil, industry forecasts suggest continued growth in Russian mining capacity, with data centre demand expected to expand 30–35% annually through 2030, indicating persistent interest in crypto infrastructure investments.
In another crypto mining development, Turkmenistan shifted its stance on digital assets. President Serdar Berdimuhamedov approved the “Law of Turkmenistan on Virtual Assets” at the end of November 2025. The measure took effect on January 1, 2026, legalizing cryptocurrency mining and trading for the first time.
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