BlockBeats news, on February 9, according to Chapter 11 bankruptcy protection documents submitted by Bitcoin mining company NFN8 to a Texas court, the company applied for bankruptcy protection on February 2, 2026, and is seeking to sell all of its assets, affected by a major facility fire, lease obligations, and legal disputes. NFN8 has currently obtained $2.75 million in debtor-in-possession (DIP) financing from Twelve Bridge Capital to support operations during the sales process.
The main reasons for the bankruptcy of NFN8 include: a fire at its primary leased facility in Texas' Crystal City during the end of 2025 to the beginning of 2026, which caused a sudden 50% drop in mining capacity and revenue; its core capital structure is a sale and leaseback model involving more than 250 counterparties, and under the backdrop of historically low hash prices and compressed profits after the halving, the company was unable to pay high lease fees; the company is currently facing legal arbitration involving defaults, fraud, and securities violations, and the U.S. Internal Revenue Service (IRS) has made a pending tax claim of $3.2 million against it.