Poolin, once one of the world's largest Bitcoin mining pools, has filed for Chapter 11 bankruptcy protection in the United States as it seeks to sell its remaining U.S. mining assets and address approximately $173.1 million in outstanding obligations. At its peak, Poolin ranked among the top Bitcoin mining pools globally — alongside operators such as F2Pool and Antpool — coordinating hash rate from individual miners who collectively validate transactions on the Bitcoin network.

The filing covers the Singapore-based parent company and its U.S. subsidiaries, Lonestar Dream Inc. and Lonestar Taproot LLC. According to court documents, the bankruptcy petition was submitted after Poolin's Texas mining and hosting operations ceased on July 10. The company estimates it has between 10,001 and 25,000 creditors, with assets ranging from $1 million to $10 million and liabilities totaling between $100 million and $500 million. The filing adds Poolin to a series of crypto mining sector restructurings that followed the 2022 market downturn, including Compute North's Chapter 11 in September 2022 and Core Scientific's in December 2022, though Poolin's collapse stemmed primarily from lending obligations tied to its wallet business rather than mining economics alone.

Customer IOUs Dominate the Debt Structure

Chief Restructuring Officer Michael DuFrayne disclosed that unsecured customer obligations account for the majority of the debt. Approximately $163.7 million consists of IOUs issued to Poolin Wallet users after withdrawals were suspended during the 2022 cryptocurrency market downturn. Around 11,700 retail customers held frozen balances exceeding $100 when the platform halted withdrawals.

$52 Million Stalking Horse Bid Sets Auction Floor

Poolin does not plan to reorganize its business through Chapter 11. Instead, the company intends to sell all remaining U.S. mining assets to maximize recoveries for creditors.

The company has signed asset purchase agreements with Thor CALAP LLC, which will serve as the stalking horse bidder. The proposed transaction values the assets at $52 million, comprising $15 million for the Pyote property and $37 million for the Tarbush site's power rights and mining equipment.

The offer establishes the minimum auction price, though competing bids may emerge before the court approves the sale. Either property could also be sold separately if that produces a stronger outcome for creditors. The gap between the $52 million stalking horse valuation and the $173.1 million in stated obligations underscores the uncertainty around how much Poolin's creditors — predominantly retail wallet users — will ultimately recover.

Poolin conducted a three-month marketing process before selecting the bidder. During that period, advisers contacted more than 335 potential buyers, secured 28 nondisclosure agreements, and received seven letters of intent. Meanwhile, Lonestar Dream and Lonestar Taproot accumulated approximately $45.9 million in losses since their formation.

From Industry Leader to Bankruptcy

Poolin was founded in China in 2017 and rose to become one of the world's largest Bitcoin mining pools by 2019. Beyond mining services, the company expanded into digital asset lending through Poolin Wallet, offering cryptocurrency-backed USDT loans and interest-bearing deposit products.

China's ban on Bitcoin mining in 2021 forced the company to shift its operations to the United States. However, Poolin had borrowed roughly $213 million against cryptocurrency assets valued at about $355.8 million. When the 2022 crypto market crash triggered collateral liquidations, the company was left unable to meet its debt obligations or restore customer withdrawals.

The bankruptcy filing represents another significant restructuring within the cryptocurrency mining sector. The planned asset auction will determine how much value creditors can recover, bringing one of the industry's former market leaders closer to winding down its remaining U.S. operations.