Bitcoin Mining Firm NFN8 Files for Bankruptcy Protection Due to Fire and Leasing Pressure, Currently Seeking Asset Sale
**Bitcoin Mining Firm NFN8 Files for Chapter 11 Bankruptcy, Seeks Full Asset Sale**
Bitcoin mining company NFN8 filed for Chapter 11 bankruptcy protection on Feb. 2, 2026, per a court filing submitted to a Texas court on Feb. 9. The firm cited three core drivers for the move: a facility fire, unsustainable lease obligations, and ongoing legal disputes.
NFN8 is seeking to sell all its assets during the restructuring process. It has secured $2.75 million in Debtor-in-Possession (DIP) financing from Twelve Bridge Capital to fund operations amid the sale.
Key bankruptcy triggers include:
- A fire at its main Crystal City, Texas, leasing facility between late 2025 and New Year’s Day 2026, cutting mining capacity and revenue by 50%.
- Unsustainable lease payments tied to a sale-leaseback model (involving 250+ counterparties), worsened by a record-low hash price and profit squeeze post-Bitcoin halving.
- Ongoing legal arbitration over default, fraud, and securities violations,
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Three Years After Silicon Valley Bank Run and Collapse, Peter Thiel's Lone Mountain Bank Officially Opens
February 9 — Erebor Bank, a crypto-focused financial institution, became the first to secure a national banking charter during the Trump administration’s second term, officially launching today.
Chartered by the Office of the Comptroller of the Currency (OCC), Erebor is tailored for the innovation economy, with a focus on artificial intelligence (AI), defense technology, and digital assets. Its name, drawn from the Dwarven kingdom in *The Lord of the Rings*, symbolizes long-term development of crypto financial infrastructure.
Unlike consumer-focused banks, Erebor operates as an enterprise infrastructure bank. It plans to offer GPU equipment financing for AI data centers, contract guarantee loans for defense tech startups, and a functional stablecoin business. The bank will integrate an internal fiat-to-stablecoin exchange to enable true 24/7 operations.
Erebor also aims to fill the gap left by the 2023 collapse of Silicon Valley Bank (SVB). SVB was a critical funding source fo
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Bithumb Incident May Affect CEX Business Eligibility, Korean Regulators to Conduct Industry-wide Investigation into "Phantom Bitcoin" Situation
February 9th – South Korea’s Financial Supervisory Service (FSS) chief Eun Sung-soo has labeled the Bithumb mistaken transfer incident a “disaster,” vowing a wide-ranging investigation into so-called “book transactions” involving unbacked virtual assets and the development of countermeasures.
He noted that if Bithumb is found to have engaged in illegal conduct, all available legal measures will be taken. Moreover, he warned that once the upcoming Digital Assets Basic Law passes, licensing-based regulatory actions could be implemented—posing a direct threat to the virtual asset trading platform industry.
Speaking at the “2026 Major Business Plan Briefing” at FSS headquarters in Seoul, Eun said: “After receiving reports of the Bithumb incident, we’ve launched an on-site inspection and plan to escalate it to a formal investigation if illegal activity is suspected. This is a serious situation that undermines the credibility of virtual asset trading platforms.”
Eun emphasized the c
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Derivatives Market Data Shows Investors Still Leaning Towards Caution, Bullish Momentum Yet to Emerge
On February 9, even as Bitcoin rebounded to nearly $70,000, its derivatives market continues to send a warning signal. Traders are still holding defensive positions, with little to no sign of fresh long bets.
Bitcoin’s perpetual contract funding rate — the fee exchanged between long and short holders — remains negative, a bearish sign indicating traders are still positioning for downside moves or only willing to hold long positions if compensated.
Meanwhile, Bitcoin perpetual futures open interest has failed to recover since dropping from its October peak, underscoring a lack of confidence in the recent rebound. Data from Coinglass shows current open interest is 51% below the October high.
Despite Bitcoin bouncing back from nearly $60,000 to around $70,000, open interest showed no sign of recovery on Monday. “Since the October 10 market crash, liquidity and market depth have plunged significantly, pushing people to cut leveraged bets and adopt more conservative strategies,” sa
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