Cryptominer NFN8 Group has filed for bankruptcy protection in Texas, with all of its assets put up for sale.

The company pointed to a number of business challenges that had put pressure on its revenue line, but blamed a late 2025 data center fire for causing bankruptcy.

NFN8 operates its own mining systems, but also sells machines to third-party companies and then leases them back, with those lease payments covered by the mining, requiring Bitcoin prices to remain firm.

The company turned to miner Core Scientific to host those systems in 2020, with the company managing most of its equipment by late 2022. But, just as NFN8 reached this milestone, Core Scientific declared bankruptcy.

While some miners continued to be served by Core Scientific, NFN8's contract was terminated in mid-2023, leaving the company with "thousands of operational miners that could not be immediately redeployed," chief restructuring officer Erik White said in bankruptcy documents.

"For lessors whose miners remained operational at non-Core Scientific sites, NFN8 continued both operations and lease payments. For lessors whose miners were stranded, NFN8 provided notice and temporarily suspended payments absent objection. For any lessor that objected, payments continued."

Leases were extended, with plans to resume mining at new facilities by the spring of 2024. Then came the April 2024 Bitcoin halving.

While this was cut to block rewards was long known, price recovery took longer than previous cycles or NFN8's expectations. "By June 2024, it became clear that mining revenues were insufficient to fund lease obligations, operating expenses, and capital expenditures simultaneously," White said.

NFN8 again suspended some lease payments, until conditions improved in November 2024.

Next came a lawsuit from three participants in the Sale-Leaseback Program, who claimed breach of contract, fraud, and alleged securities violations. NFN8 denied the allegations, with arbitration yet to conclude. "The cost of completing the arbitration is substantial, and an adverse ruling, followed by post-judgment collection efforts, could result in a value-destructive disruption of the Debtors’ operations," White said.

With Core Scientific no longer serving the company, it leased its own space across three sites, including one in Crystal City, Texas.

That site, in Zavala County, was damaged by a fire during the week between Christmas and New Year’s Day 2025, with mining capacity and revenue halved. The company is seeking insurance payments, but the timing is uncertain.

With the fire and looming arbitration, NFN8 said that it had to enter Chapter 11 bankruptcy protection.