NFN8 Group, Inc.

The jointly administered cases of Bitcoin mining operator NFN8 Group, Inc. and its affiliates NFN8 Capital, LLC and NFN8 Holdings, LLC were converted from Chapter 11 to Chapter 7 on June 29, 2026, when the court granted the Debtors' own motion to convert and appointed John Patrick Lowe as Chapter 7 trustee. The conversion orderDkt. 214 expressly preserved the liens, rights, and priorities fixed by the case's earlier financing orders and by the approved sale of substantially all assets to EXO1 LLC, all of which remain in effect.

The conversion capped a compressed restructuring that began with the Debtors' voluntary Chapter 11 petitionsDkt. 1 on February 2, 2026. According to the first-day declaration of Chief Restructuring Officer Erik WhiteDkt. 8, the business was battered by a sequence of shocks: the December 2022 bankruptcy of hosting provider Core Scientific led to termination of the Debtors' hosting agreements in mid-2023 and stranded thousands of miners; the April 2024 Bitcoin halving compressed mining margins before revenues could recover; litigation by sale-leaseback counterparties — more than 250 investors who had purchased mining equipment and leased it back to the Debtors — was compelled to arbitration in March 2025; and a fire at the Crystal City, Texas facility over the 2025 holiday period cut mining capacity and revenue by roughly half.

At the outset, the Debtors framed Chapter 11 as a vehicle for a court-supervised sale of substantially all assets, moving on day one for emergency authority to enter a and to use cash collateral. Independent director Eric J. Taube held exclusive authority over restructuring and sale matters, with CRO Erik White directing the process and CEO Josh Moore recused from restructuring decisions due to a conflict of interest. The sale to EXO1 LLC and the subsequent conversion followed before a plan could be confirmed.