Just two years back, Bitcoin mining felt like a sure bet, a literal digital gold mine. Then came the 2026 slump. Market prices cratered, power bills went through the roof, and that post-halving squeeze tightened the screws on the entire industry.
The impact of this change has manifested as large-scale miner capitulation, with a swathe of mining operations shuttering for good amid increasingly challenging business conditions. Some miners folded instantly, while others tried to survive by auctioning off their assets first, before ultimately walking away. But all of their decisions fed into the same larger narrative: an era of volatility for Bitcoin hashpower, and a miner community struggling to find equilibrium.
Here is a closer look at Bitcoin mining operations that hit the wall in 2026, plus what their exits tell us about the broader mining network.
5 Bitcoin Mining Companies That Went Bust in 2026
| Company | Location | Status in 2026 | Key Detail |
|---|---|---|---|
| NFN8 Group | Texas & Iowa, USA | Chapter 11 Bankruptcy | 5,000+ ASICs |
| BitRiver | Russia | Bankruptcy Supervision | Once controlled a majority of Russia’s mining market |
| American Bitcoin Corp. | Miami, Florida, USA | High Risk / Major Losses | Trump-backed; 90% stock decline |
| Bitfarms | Canada (redomiciling to Delaware) | Full Exit / AI Pivot | Rebranding as Keel Infrastructure |
| Bitdeer Technologies | Singapore (global ops) | Treasury Liquidated / AI Pivot | Sold all BTC; pivoting to AI/HPC |
1. NFN8 Group
CEO: Josh Moore
Founded: 2016, operational since 2017
Headquarters: Austin, Texas, with facilities in Crystal City, Texas, and Iowa
NFN8 Group filed for Chapter 11 bankruptcy on February 2, 2026, in the U.S. Bankruptcy Court for the Western District of Texas. A fire at its main Crystal City facility between late 2025 and early 2026 slashed mining capacity and revenue by 50%. The subsequent in BTC value only exacerbated the organization’s financial woes.
The company ran over 5,000 ASIC miners and had previously partnered with Core Scientific for hosting services, though that agreement ended in 2023. NFN8 estimated its assets at below $50,000 against liabilities of between $1 million and $10 million. Courts placed the company under supervision to sell all assets, with debtor-in-possession financing from Twelve Bridge Capital keeping basic operations alive during the process.
2. BitRiver
CEO: Igor Runets (also founder)
Founded: 2017
Headquarters: Russia, with data centers previously in Irkutsk, Buryatia and Ingushetia
On January 27, 2026, the Sverdlovsk Arbitration Court placed the parent company, LLC Group of Companies Fox (holding 98% of BitRiver), under bankruptcy supervision, according to a report by Kommersant. The trigger was a $9.2 million debt to energy giant En+ over a canceled equipment supply deal.
Courts ruled in favor of En+ in April 2025, but enforcement failed due to insufficient assets. Accounts froze, operations stalled, executive departures followed, and data centers across three Russian regions ceased activity due to unpaid power bills and regulatory bans. Additionally, CEO Igor Runets was reportedly placed under house arrest in Moscow in late January 2026 on charges of tax evasion.
3. American Bitcoin Corp.
CEO: Mike Ho
Founded: March 2025
Headquarters: Miami, Florida. Co-founded by Eric Trump, who serves as Chief Strategy Officer
American Bitcoin Corp. has not filed for bankruptcy, but its financial position puts it firmly on this list. The company reported a $59 million fourth-quarter loss in 2025 and watched its stock fall 90% from its September 2025 peak. Bitcoin’s slide from $126,000 to around $60,000 resulted in a $227 million unrealized loss in its reserves.
The company holds over 6,000 BTC with a clear accumulation strategy, yet macroeconomic factors affecting crypto mining hardware and its refusal to diversify into AI left it exposed. Analysts describe bankruptcy as a real tail risk if Bitcoin stays below $90,000 to $100,000 for an extended stretch.
4. Bitfarms
CEO: Ben Gagnon
Founded: 2017
Headquarters: Canada, currently re-domiciling to Delaware, USA
Bitfarms announced a complete wind-down of its Bitcoin mining operations in early 2026, walking away from nearly a decade in the sector. It absorbed $46 million in losses in the second half of 2025 before the 2026 price slump pushed margins below zero.
Rather than restructure within crypto, Bitfarms chose a full exit and a rebrand as Keel Infrastructure, targeting AI and high-performance computing instead. Shares fell more than 12% on the announcement day. The company is evaluating cloud operations and HPC monetization as its new direction.
5. Bitdeer Technologies
CEO: Jihan Wu (also founder)
Founded: 2018, spun out from Bitmain in 2021
Headquarters: Singapore, with data centers across the US, Europe, Malaysia, Norway and Bhutan
The company liquidated its entire Bitcoin treasury in February 2026, selling all newly mined coins and over 1,100 BTC in its final weeks to bring holdings to zero. Bitdeer management denied bankruptcy plans and said mining continues for shareholders, but the treasury liquidation rattled markets and sent shares lower overnight.
Bitdeer is now pivoting toward AI and HPC infrastructure, including data center conversions and AI cloud services, in collaboration with NVIDIA on GB200 NVL72 systems. They sold their 1,100+ BTC to fund a $325 million expansion into AI and to pay for new NVIDIA chips.
Bitcoin Hashpower Increases: What Does It Mean for the Network?
Despite the departure of these major firms, the total hashpower of the Bitcoin network has recently increased. This trend indicates that more efficient hardware is replacing the miners purged from the system, who may have been operating with older machines. Large institutional miners with lower electricity costs are expanding their market share, setting the stage for a more robust Bitcoin network in the coming months. You can learn more about these cycles in our previous guide on past miner capitulations.
A rising hashpower suggests that the network remains secure even during financial stress. Investors often view this metric as a sign of long term confidence in the underlying technology. Competition for blocks remains high among the surviving participants. Most miners now prioritize efficiency and sustainable energy to maintain their profit margins.
