Bitcoin mining company NFN8 files for bankruptcy protection due to fire and leasing pressures, currently seeking to sell assets.

Mars Finance reports that on February 9, Bitcoin mining company NFN8 filed for Chapter 11 bankruptcy protection with the Texas court. According to the documents, affected by a major facility fire, lease obligations, and legal disputes, the company filed for bankruptcy on February 2, 2026, and is 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: a fire at its primary leased facility in Crystal City, Texas, between late 2025 and New Year’s 2026, which caused a 50% drop in mining capacity and revenue; its core capital structure is a sale-leaseback model involving over 250 counterparties. Amid record-low hash prices and profit compression after the halving, the company is unable to pay high lease 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.