NFN8 Group, Inc. and its two operating affiliates—NFN8 Capital, LLC and NFN8 Holdings, LLC—filed Chapter 11 petitions on February 2, 2026 in the Western District of Texas and are now in Chapter 7 administration under a court-appointed trustee, capping a restructuring built around a court-supervised sale of the debtors' Bitcoin mining assets.
The debtors run thousands of industrial mining machines across facilities in Crystal City, Texas and Shelby and Walnut, Iowa, financed in part through an equipment sale-leaseback program with more than 250 counterparties. Per the first-day declaration of CRO Erik WhiteDkt. 8, distress built in stages: the 2022 bankruptcy of hosting partner Core Scientific terminated the debtors' hosting arrangements and stranded miners; the April 2024 Bitcoin halving compressed mining margins; sale-leaseback participants sued and compelled arbitration in March 2025; and a fire at the Crystal City facility over Christmas 2025 cut mining capacity and revenue by roughly half.
Before filing, a January 21, 2026 omnibus consent reshaped governance—installing independent director Eric J. Taube with exclusive sale and restructuring authority and Erik White as CRO, and removing CEO Josh Moore from restructuring decisions. At the Chapter 11 petitionsDkt. 1, the debtors identified a court-supervised sale of substantially all assets as their goal, and sought liquidity through an emergency DIP and cash-collateral motionDkt. 5 proposing a $2.75 million multi-draw term loan from Twelve Bridge Capital, LLC at 13% PIK, backed by priming liens and a superpriority administrative claim.
Operations had largely ceased by mid-2026: the June monthly operating report for NFN8 CapitalDkt. 28 shows zero employees (down from fourteen at the order for relief), no operating revenue, and $76,290 of cash, while the parent entities reported only intercompany balances. The case has since converted to Chapter 7—an amended Chapter 7 noticeDkt. 216 sets a meeting of creditors for August 14, 2026 before trustee Randolph Osherow, and the trustee's motion to discharge the claims and noticing agentDkt. 218 marks the wind-down of case-administration functions.
