Bitcoin Miner Poolin Technology Files Chapter 11 With $173M Debt as $52M Asset Sale Moves Forward

Debt and Affected Users

Poolin Technology, erstwhile a ascendant Bitcoin mining excavation operator, has filed for Chapter 11 bankruptcy extortion and is seeking tribunal support to merchantability its remaining U.S. mining assets and upwind down operations. The Singapore-based institution and its U.S. affiliates, including Lonestar Dream and Lonestar Taproot, filed voluntary petitions connected July 22 successful the U.S. Bankruptcy Court for the District of New Jersey.

The filing lists estimated liabilities betwixt $100 cardinal and $500 million, against estimated assets of $1 cardinal to $10 million. Court records bespeak full indebtedness stands astatine astir $173 million, with astir $163.7 cardinal successful unsecured promissory notes issued to wallet customers aft the institution suspended withdrawals during the 2022 cryptocurrency marketplace downturn.

Around 11,700 wallet holders with balances exceeding $100 stay affected by the frozen funds.

As portion of the court-supervised liquidation, Poolin has reached abstracted stalking-horse plus acquisition agreements totaling $52 cardinal with Thor CALAP LLC for its 2 West Texas mining infrastructure facilities. Under the projected transaction, the Pyote tract is valued astatine $15 million, portion the Tarbush facility’s powerfulness rights and instrumentality are valued astatine $37 million.

The bidding process volition stay taxable to tribunal support and higher oregon amended offers. Poolin noted successful tribunal filings that increasing request for artificial quality information infrastructure could pull further involvement successful the sites’ powerfulness capableness and hardware.

According to reports, Poolin’s fiscal distress dates backmost to China’s May 2021 prohibition connected cryptocurrency mining, which disrupted the company’s bequest operations. Subsequent attempts to pivot toward mining infrastructure successful West Texas were hindered by lower-than-expected powerfulness allocations, instrumentality overorders, and $8.8 cardinal successful hardware income losses betwixt fiscal years 2023 and 2025.

In mid-2022, crisp declines successful bitcoin prices triggered borderline calls from lenders, forcing Poolin Wallet to pledge integer assets arsenic collateral. In September 2022, the institution declared a liquidity situation and halted withdrawals, replacing lawsuit deposits with IOUs. A further crypto terms driblet successful precocious 2022 led to collateral liquidations by lenders.

Poolin permanently halted each mining and hosting operations connected July 10, 2026, retaining lone a minimal workforce to unafraid instrumentality and facilitate the plus merchantability process. The institution stated it has nary plans to resume operations and volition usage proceeds from the bankruptcy merchantability to fulfill creditor claims nether a liquidating plan.