World’s Largest Bitcoin Mining Producer Faces Major Lawsuit

Bitmain, a mining equipment manufacturer, is facing a lawsuit from a former partner. Specifically, Old Const alleges that the firm pulled out of a hosting agreement without cause and is now trying to illegally reclaim its hardware.

Old Const filed this action in hopes of receiving a Temporary Restraining Order. Bitmain allegedly threatened to find a new jurisdiction to acquire a seizure order for the hardware in question.

Bitmain’s New Lawsuit Explained

2025 has been a good year for Bitmain’s US operations, despite its subsidiary being placed on a sanctions list in January. The firm secured a $314 million deal with the Trump-backed American Bitcoin and plans to formally establish US operations.

However, it’s hitting a speed bump, as Bitmain now faces a lawsuit from Old Const, a US hosting provider:

“On August 22, 2025, Bitmain’s counsel sent Old Const a Notice of Termination as to all agreements including the HSA. The Notice of Termination was improper and a material breach of the parties’ agreements. Bitmain has fabricated purported breaches in order to terminate the agreement immediately,” the lawsuit claimed.

Specifically, the lawsuit claims that Bitmain tried to renege on several key clauses of a November 2024 agreement. Old Const agreed to purchase mining equipment from Bitmain and provide hosting services with it, but these two companies are ending their association early.

Hardware Recovery Efforts

Instead, the firm is alleging that Bitmain may try to recover some of its mining hardware without cause. Its lawsuit claims that Bitmain is violating the agreement in a few ways in addition to pulling out under false pretenses.

One of these complaints concerns an agreed-upon jurisdictional issue.

Apparently, although both companies decided to adjudicate all legal disputes in Texas, Bitmain threatened to file a seizure order in a Tennessee state court. Old Const filed its lawsuit against Bitmain to preempt this sort of action, demanding that the courts examine the breach of contract allegations before any possible seizures happen.

Old Const filed its Bitmain lawsuit two days ago, so many details are up in the air. The mining manufacturer has been involved in other hardware disputes in the past, as an attempt to recover equipment from former partners last year apparently failed.

Overall, these two parties could settle out of court, or the struggle could drag on without a clear resolution. Either way, Bitmain has a lot of irons in the fire right now. This legal battle isn’t likely to bring its expansion efforts to a complete halt.