BlockBeats News, February 9 — According to Chapter 11 bankruptcy protection filings submitted by Bitcoin mining company NFN8 to a Texas court, the company has filed for bankruptcy on February 2, 2026, due to major facility fires, leasing obligations, and legal disputes. It is also seeking to sell all its assets. Currently, NFN8 has secured $2.75 million in debtor-in-possession (DIP) financing from Twelve Bridge Capital to support operations during the sale process.
The main reasons for NFN8’s bankruptcy include: between late 2025 and New Year’s 2026, a fire at its primary leasing facility in Crystal City, Texas, caused a 50% drop in mining capacity and revenue; its core capital structure is a sale-leaseback model involving over 250 counterparties. Under the pressure of a historic low hash price and reduced profits after the halving, the company is unable to pay high leasing fees; it is also facing legal arbitration involving defaults, fraud, and securities violations, and the IRS has filed a $3.2 million tax claim against it.
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