Bitmain Sued Over $20.8M Tennessee “On-Rack” Bitcoin Hashrate Sale
Bitmain faces a new lawsuit from a customer over an “on-rack” bitcoin mining sale in Tennessee, adding another data point to the company’s U.S. hashrate deployment map.
In a complaint filed Sept. 12, 2025, in the Southern District of Texas, 1969 LLC, a Wyoming-based company, accused Bitmain of breaching an April 21 On-Rack Sales and Purchase Agreement involving 6,933 Antminer S21 units totaling 1.386 EH/s valued at $15/TH/s.
The rigs were sold pre-installed at a Tennessee site located at 252 TN-140, Puryear, under a structure in which buyers purchase operating hashrate capacity instead of receiving physical delivery of the machines.
The filing alleges that Bitmain failed to repair malfunctioning servers, wrongfully terminated the contract on Aug. 22, and violated the agreement’s Houston arbitration clause by threatening to pursue legal action in a Tennessee county court. 1969 LLC is seeking a temporary restraining order and injunction preventing Bitmain from seizing the equipment, as well as a declaratory judgment upholding the arbitration requirement.
The Tennessee facility joins a series of U.S. sites where Bitmain has deployed its own mining hardware under customer-facing “on-rack” agreements — a model previously detailed in Miner Weekly’s mapping of the company’s U.S. mining footprint, which includes clusters in Texas, Georgia, and Washington State.
The case also follows Miner Weekly’s earlier report that Bitmain sold on-rack hashrate to Asia-based investors, including Hong Kong–listed firms DL Holdings and International Business Settlement Holdings, which acquired hosted S21 Hydro fleets already operating in the U.S. Those transactions signaled how Bitmain has been offloading inventory from American sites as institutional demand in North America cooled.
