Former Bitcoin Mining Leader Enters Bankruptcy Process
Poolin, once the world's largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection in the United States, marking the latest chapter in the collapse of a company that helped shape the early industrial mining sector before being overwhelmed by the crypto market crash and an unsuccessful U.S. expansion.
Summary:
- Former Bitcoin mining leader Poolin has filed for Chapter 11 bankruptcy alongside two U.S. subsidiaries.
- The company plans to sell its Texas mining facilities as part of a court-supervised liquidation.
- Most outstanding claims stem from customer funds frozen during the 2022 crypto market downturn.
Texas Mining Assets Headed for Sale
The bankruptcy filing, shared by TheEnergyMag, submitted by Poolin Technology PTE. Ltd. together with U.S. affiliates Lonestar Dream Inc. and Lonestar Taproot LLC., proposes selling two mining facilities in West Texas through a court-supervised auction under Section 363 of the U.S. Bankruptcy Code.
The company has selected Thor CALAP LLC as the stalking-horse bidder, establishing an initial purchase price of approximately $52 million for the sites. Assets include the Pyote facility in Ward County and the Tarbush facility in Pecos County, with much of their value tied to electricity infrastructure and power rights rather than mining equipment alone.
Court documents indicate that interest extended beyond cryptocurrency companies, with artificial intelligence infrastructure operators, hyperscale data center developers and private equity firms participating in the sale process as demand for high-power computing sites continues to grow.
Operations Have Already Ceased
Poolin shut down mining and hosting operations at both Texas facilities on July 10, weeks before filing for bankruptcy protection.
The company said it does not intend to restart operations. Instead, a small team has been retained to maintain the properties, preserve equipment and oversee the liquidation process while the bankruptcy case proceeds.
Unlike a traditional Chapter 11 restructuring aimed at keeping a business operating, Poolin’s filing is structured as a liquidation designed to monetize remaining assets and distribute proceeds to creditors.
Expansion Plans Unraveled
Court documents trace the company’s financial problems to a combination of market conditions and infrastructure constraints.
Poolin expanded aggressively after planning for up to 600 megawatts of electricity capacity in Texas but ultimately secured only 100 megawatts, leaving it with substantially more mining equipment than it could deploy. The company subsequently sold excess hardware at significant losses between 2023 and 2025.
The difficulties compounded problems that emerged during the 2022 cryptocurrency market downturn.
After China’s mining ban forced major operators overseas, Poolin borrowed approximately $213 million backed by wallet collateral to support customer withdrawals and finance its U.S. expansion. When crypto markets deteriorated, withdrawals were suspended in September 2022, leaving thousands of customers unable to access their assets.
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According to the bankruptcy filings, the company owes roughly $173 million, including approximately $164 million tied to customer claims arising from the withdrawal freeze.
Poolin reported assets of between $1 million and $10 million, compared with liabilities estimated between $100 million and $500 million.
From Industry Leader to Liquidation
Founded in 2017, Poolin quickly became one of the largest participants in the Bitcoin mining industry. At its peak in 2019, the mining pool was responsible for roughly one in every seven Bitcoin blocks added to the blockchain, making it the world’s largest mining pool by hashrate.
Its bankruptcy highlights how dramatically the mining industry has changed over the past several years. Rising energy costs, tighter financing conditions, regulatory shifts and increasing infrastructure requirements have favored larger, better-capitalized operators, while companies that expanded aggressively during previous market cycles have struggled to survive.
Poolin’s creditors now depend largely on the outcome of the Texas asset sale, with the value of the company’s power infrastructure expected to determine how much can ultimately be recovered through the liquidation process.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
