According to ChainCatcher, the Russian business daily Kommersant reported that BitRiver, a major Russian Bitcoin mining company, is facing a severe crisis and may go bankrupt. Its parent company has entered a bankruptcy observation procedure initiated by an arbitration court. The main creditor, "Siberian Infrastructure" under the En+ Group, is demanding over $9.2 million in outstanding debts. The report states that BitRiver became embroiled in a legal dispute with En+ due to failure to deliver equipment despite not receiving the advance payment. Additionally, the company is facing multiple lawsuits from electricity providers demanding tens of millions of rubles in unpaid electricity bills. Unable to pay the electricity costs and due to local bans, BitRiver has ceased operations at several data centers in Irkutsk, Buryatia, and other regions. Previously, it held over 50% of Russia's mining market. The company is currently negotiating changes in ownership and the transfer of remaining assets. Previously, ChainCatcher reported that BitRiver's CEO was arrested on suspicion of tax evasion.
Russian Bitcoin Miner BitRiver Faces Bankruptcy Amid Debt Disputes
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Summary
Russian bitcoin mining giant BitRiver is on the verge of collapse after its parent company was placed under bankruptcy observation by a court. En+ Group's Siberian Infrastructure is seeking over $9.2 million in unpaid debts. The company also faces lawsuits from utility providers for hundreds of millions of dollars in unpaid electricity bills. Amid the ongoing debate over the approval of a bitcoin ETF, several of BitRiver's data centers in Irkutsk and Buryatia have shut down due to nonpayment. Once controlling more than half of Russia's mining market, the company is now exploring changes in ownership and asset transfers. The race for a spot bitcoin ETF could reshape the economics of mining in the region.
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