đ„New Chapter 11 Bankruptcy Filing - NFN8 Group Inc.đ„
Bitcoin miner succumbs to sale-leaseback structure and catastrophic fire.
Forget about â16 vibes, someone apparently short circuited the DeLorean and took us all back to â22.
On February 2, 2026, Austin TX-based NFN8 Group Inc. (âNFN8â) and two affiliates, NFN8 Capital LLC (âNFN8 Capitalâ) and NFN8 Holdings LLC (âNFN8 Holdings,â and with NFN8 and NFN Capital, the âdebtorsâ) filed chapter 11 bankruptcy cases in the Western District of Texas (Judge Robinson). The debtors ââŠoperate a bona fide, asset-intensive Bitcoin mining business at industrial scaleâ; they ââŠown, lease, and operate thousands of industrial-grade Bitcoin mining supercomputers deployed across multiple facilities supported by dedicated power infrastructure, hosting arrangements, and operational personnel.â All of which sounds impressive ⊠we guess ⊠and worked ⊠we guess ⊠so long as the music didnât stop.
For a while the music didnât just keep going, it was, like a cocaine-riddled bingefest in freakinâ Rishiâs apartment, cranked up to 90. The debtors generated revenue from Bitcoin block rewards and transaction fees from mining ops, immediately turned around and took those monies (along with those generated from equipment sales, lease arrangements, joint ventures and hosting fees) and put it right back into expanding their mining fleet, while also using that money to satisfy (sale-leaseback-based) lease obligations, JV payment obligations, and operations. Per CRO Erik White from the suddenly very busy HMP Advisory Holdings, LLC d/b/a Harney Partners, âThe Debtorsâ business requires substantial upfront capital investment and ongoing operating expenditures. Revenues fluctuate based on Bitcoin price, network difficulty, hash rate, and market conditions affecting mining economics.â F*ck, weâre pretty sure weâve heard that before.
In â22, the record starting skipping. As you all know Core Scientific Inc. filed its chapter 11 bankruptcy cases and ultimately terminated NFN8âs hosting agreements, leaving the debtors with thousands of operational miners that could not be immediately redeployed. At that point, the debtors implemented a targeted lease payment suspension program.
Fast forward to the âBitcoin halvingâ of April â24 and, in a shock to an industry that never heard the adage âpast performance doesnât guarantee future results,â the debtors found themselves blindsided by a post-halving market reaction that didnât track prior cycles, leading to a lagging revenue-per-tera hash rate â whatever the bloody f*ck that means â and mining margins fell dramatically below expectations.
Well f*ck. The record flew right off the player. Do tell, Mr. White:
âFor many years, this business model functioned successfully. NFN8 Holdings made lease payments as required, and the Debtors consistently reinvested into their mining infrastructure. Ultimately, however, a convergence of extraordinary events â market dislocation following the April 2024 Bitcoin halving, prolonged and expensive litigation, and a catastrophic fire at one of the Debtorsâ primary operating facilities â materially impaired liquidity and forced the Debtors to seek chapter 11 protection to preserve enterprise value and avoid disorderly liquidation.â
Thatâs right, just like after the Core Scientific situation, the debtors had to suspend lease payments for several months. Fed up, at this time three participants in the debtorsâ sale-leaseback program, Mobile Med Work Health Solutions Inc., JLL Ventures Inc., and M-M WHS LLC, got lawyers in the mix and sued the debtors in the United States District Court for the Western District of Texas for, among other things, breach of contract and fraud. Months later, in March â25, the court granted the debtorsâ (and other defendantsâ) motion to compel arbitration (which still hasnât happened).
Did you catch that âcatastrophic đ„â bit đ. Yeah, that happened too. One of the locations the debtors operated had a bit of a conflagration that reduced mining capacity and cut revenue by 50%. Insurance for that might take some time to collect, lol.
So, bankruptcy. The debtors want to use the bankruptcy process to obtain critical financing* and pursue a sale process. And this being â26, that sale process will of course include some insider-y sh*t (PETITION Note: what the f*ck is going on with all of this recent insider-y activity?!?). Principal Josh Moore** is affiliated with a potential purchaser and so heâs been removed from all decision-making authority. Meanwhile, the debtors have appointed Mr. White as CRO and added Eric Taube as an independent to the board of directors.
Itâs probably a good thing thereâs insider interest: the crypto-verse is looking a bit fraught these days.
Interestingly, the US Internal Revenue Service is the only listed unsecured creditor, owed $3.2mm on account of â21 federal taxes, đ€.
In addition to Mr. White, the debtors are represented by Kane Russell Coleman Logan PC (William âTripâ Nix, Casey Roy, Abigail Rogers, JaKayla DaBera). The proposed DIP lender, Twelve Bridge Capital LLC, is represented by Fishel Law Group (Michael Fishel).
*A DIP Motion is already on file. They seek $2.75mm ($1mm interim, 13% PIK) from an entity called Twelve Bridge Capital LLC
**Mr. Moore owns 54.5% of the equity in the debtors.
Company Professionals:
Legal: Kane Russell Coleman Logan PC (William âTripâ Nix, Casey Roy, Abigail Rogers, JaKayla DaBera)
Independent Director: Eric Taube
Financial Advisor/CRO: HMP Advisory Holdings, LLC d/b/a Harney Partners (Erik White)
Claims Agent: Epiq (Click here for free docket access)
Other Parties in Interest:
DIP Lender: Twelve Bridge Capital LLC
Legal: Fishel Law Group (Michael Fishel)