Bitmain sued over $20.8 million “rack-mounted” Bitcoin hashrate sale in Tennessee

Jinse Finance reported that Bitmain is facing a new lawsuit from a customer regarding its “rack-mounted” bitcoin mining equipment sales business in Tennessee. This lawsuit adds another related case to the company’s hash rate deployment map in the United States. On September 12, 2025, Wyoming-based 1969 LLC filed a lawsuit in the Southern District Court of Texas, accusing Bitmain of breaching the “Rack-Mounted Sales Purchase Agreement” signed on April 21. According to the agreement, the two parties were involved in a transaction for 6,933 Antminer S21 units, with a total hash rate of 1.386 EH/s, valued at $15 per TH/s. These miners were pre-installed at a site located at 252 TN-140 Highway, Pulaski, Tennessee, and the transaction adopted a “buyer purchases operational hash rate” model rather than direct receipt of the physical miners. The lawsuit states that Bitmain committed three breaches of contract: failing to repair faulty servers, unlawfully terminating the contract on August 22, and ignoring the “Houston arbitration clause” in the agreement while threatening to file a lawsuit in a county court in Tennessee. Currently, 1969 LLC is seeking a temporary restraining order and injunction from the court to prohibit Bitmain from seizing the related equipment, while also requesting a declaratory judgment confirming the validity of the arbitration clause.