Bitcoin Mining Firm NFN8 Files for Bankruptcy Protection Due to Fire and Leasing Pressure, Currently Seeking Asset Sale

BlockBeats News, February 9th, according to a Chapter 11 bankruptcy protection filing submitted to a Texas court by Bitcoin mining firm NFN8, the company has filed for bankruptcy protection on February 2, 2026, citing a major facility fire, lease obligations, and legal disputes, and is seeking to sell all of its assets. Currently, NFN8 has received $2.75 million in Debtor-in-Possession (DIP) financing from Twelve Bridge Capital to support operations during the sale process.

The primary reasons for NFN8's bankruptcy include: a fire at its main leasing facility in Crystal City, Texas, between the end of 2025 and New Year's Day 2026, resulting in a 50% drop in mining capacity and revenue; its core capital structure is based on a sale-leaseback model involving over 250 counterparties, and amid a record low hash price and profit squeeze after the halving, the company could not afford high lease payments; facing legal arbitration involving default, fraud, and securities violations, and the Internal Revenue Service (IRS) has filed a pending $3.2 million tax claim against it.