BitRiver parent enters bankruptcy monitoring as CEO placed under house arrest: report

A Russian court has placed the parent company of BitRiver, the nation's largest bitcoin mining operator, under formal bankruptcy observation. The Sverdlovsk Regional Arbitration Court's ruling, dated Jan. 27, initiates monitoring procedures for Fox Group of Companies LLC, which owns 98% of BitRiver Management Company, Kommersant reported on Monday.

According to the report, the bankruptcy petition was filed by Infrastructure of Siberia, a subsidiary of the energy conglomerate En+. It stems from an unfulfilled equipment supply contract for which Infrastructure of Siberia made an advance payment exceeding 700 million rubles ($9.2 million). 

After the equipment failed to arrive, the contract was terminated, and a lawsuit was filed. The Arbitration Court of the Irkutsk Region ruled in favor of the En+ subsidiary in April 2025, but enforcement proceedings found no sufficient assets to cover the claim, leading to the bankruptcy filing, the report said.

As part of the wider dispute, BitRiver company accounts were frozen, a move lawyers told Kommersant in May 2025 could paralyze the business.

Financial and operational strains

Beyond the En+ default, BitRiver is navigating a broader financial contraction characterized by mounting utility liabilities and significant executive turnover. The company faces a series of claims from major Russian energy suppliers over unpaid electricity bills. 

Per the report, courts are considering claims for 133 million rubles from En+ Sbyt and 640 million rubles from the Irkutsk Electric Grid Company. A subsidiary of Norilsk Nickel, NTEK, has already been awarded 168.7 million rubles in back electricity debt, while Regional Rosseti entities have also filed debt collection lawsuits. Combined, these energy-related claims total over 940 million rubles ($12.2 million).

Operational collapse followed financial distress. Layoffs began in early 2025, accompanied by delayed salary payments. By the end of 2025, approximately 80% of BitRiver's top management had departed, offices were shuttered, and equipment was removed, according to Kommersant's sources.

Negotiations for asset transfer underway amid leadership crisis

Amid the disintegration, negotiations are underway regarding a change in BitRiver's ownership and the transfer of its remaining assets, Kommersant said. 

This comes as founder and CEO Igor Runets faces separate legal jeopardy. A representative of the law enforcement agencies told TASS on Monday that Runets was charged under Article 199.2 of Russia’s criminal code for tax evasion. Moscow's Zamoskvoretsky District Court issued a ruling on Jan. 31 placing him under house arrest. The specific nature of the charges has not been disclosed.

BitRiver, a group of over 70 legal entities, once operated 15 data centers with a total capacity exceeding 533 MW. According to the HSE Center for Electric Power Research, its share of the Russian mining market exceeded 50%. Public data cited by Kommersant indicates the company's revenue surpassed 10 billion rubles ($131.6 million) in 2024.