Poolin Technology and two U.S. affiliates filed for Chapter 11 bankruptcy protection on July 22, seeking approval to sell their West Texas Bitcoin mining sites and wind down their remaining operations.

The Singapore-based parent company filed together with Lonestar Dream Inc. and Lonestar Taproot LLC in the U.S. Bankruptcy Court for the District of New Jersey. The companies asked for joint administration under case number 26-18325. In the filing, Poolin reported assets of between $1 million and $10 million and liabilities of between $100 million and $500 million.

Poolin was founded in China in 2017 and briefly held the largest share of Bitcoin’s mining hashrate in 2019, a measure of computing power securing the Bitcoin network. Its U.S. entities had already stopped mining before the bankruptcy filing, and Lonestar Dream shut down its remaining operations on July 10. The companies said they do not plan to restart those operations.

Thor CALAP Sets $52 Million Floor for Sale Process

Thor CALAP LLC agreed to act as the stalking-horse bidder for Poolin’s Pyote and Tarbush sites, establishing the minimum price for a court-supervised auction. In bankruptcy sales, stalking-horse bids are used to set baseline terms while allowing higher or better offers to compete through the court process.

Under the proposed transaction, the buyer offered $15 million for the Pyote assets and $37 million for the Tarbush assets. The asset packages include real estate, electrical infrastructure, power rights, mining equipment and other property tied to the two facilities.

Poolin began marketing the sites in March and contacted more than 335 potential buyers across Bitcoin mining, artificial intelligence, high-performance computing, private equity and real estate. The outreach reflects broader demand for large power-connected sites, which can be relevant to both crypto mining and compute-intensive data-center uses. That process resulted in 28 confidentiality agreements, seven letters of intent and three additional indications of interest.

Competing bidders may submit offers for the properties either together or separately. The proposed sale procedures set a September 8 bid deadline, though the court had not approved the auction procedures or scheduled a sale hearing at the time of the filing.

Wallet Freeze Leaves $163.7 Million Outstanding

Poolin’s financial difficulties are not limited to its Texas mining business. Its wallet operation suspended withdrawals during the 2022 market crash and issued approximately $163.7 million in IOU tokens to customers. Around 11,700 wallet holders had outstanding balances of more than $100.

The company had borrowed approximately $213 million against $355.8 million in crypto collateral before falling prices created margin pressure. Antalpha later liquidated the collateral after Bitcoin fell below roughly $16,800 in November 2022.

Poolin’s Texas expansion also failed to match its original power expectations. The company ordered equipment based on an anticipated 600-megawatt allocation but initially received 100 megawatts, leaving surplus machines that had to be sold at discounts. Equipment sales generated approximately $8.8 million in losses between 2023 and 2025, while the two U.S. subsidiaries accumulated $45.9 million in losses.

The filing comes as pressure has continued across the mining sector. Bitcoin difficulty dropped 10.09% in June, and American Bitcoin reported an $81.8 million first-quarter loss. Mining difficulty is one factor affecting miners’ operating economics because it changes the amount of computing work required to compete for block rewards.

Poolin’s first-day bankruptcy hearing is scheduled for July 27 at 11:00 a.m. Eastern Time.