Former Bitcoin Mining Giant Poolin Files Chapter 11, Targets $52M Texas Asset Sale
Key Takeaways
- •Poolin Technology filed for Chapter 11 bankruptcy in New Jersey through subsidiaries Lonestar Dream Inc. and Lonestar Taproot LLC, with estimated pre-petition obligations of approximately $173.1 million.
- •Customer claims constitute roughly $163.7 million, or about 95% of total debt, stemming from unsecured IOUs issued after the company suspended wallet withdrawals during the 2022 cryptocurrency crash.
- •Thor CALAP LLC submitted a $52 million stalking-horse bid—$15 million for the Pyote property and $37 million for Tarbush power rights and equipment—to establish a floor price for a court-supervised auction.
- •The Singapore-based company shut down its Texas mining operations on July 10 and is pursuing asset liquidation rather than traditional restructuring.
- •Poolin's bankruptcy reflects the broader fallout from the 2022 crypto downturn that also triggered filings from mining firms such as Compute North and Core Scientific.
Poolin Technology Pte. Ltd., once one of the world's largest Bitcoin mining pool operators, has filed for Chapter 11 bankruptcy protection in New Jersey as it moves to liquidate its idle Texas mining assets.
The Singapore-based company shut down its Texas mining operations on July 10. The bankruptcy filing covers two subsidiaries, Lonestar Dream Inc. and Lonestar Taproot LLC, with reported liabilities ranging between $100 million and $500 million. Chief Restructuring Officer Michael DuFrayne estimates prepetition obligations at approximately $173.1 million.
Customer claims make up the vast majority of that debt, accounting for roughly $163.7 million. Poolin issued those unsecured IOUs after suspending wallet withdrawals during the 2022 cryptocurrency market crash. The company had previously borrowed heavily against digital assets, and falling collateral values triggered severe financial pressure that it has been unable to recover from.
$52 Million Stalking-Horse Bid Sets Auction Floor
Rather than pursuing a traditional restructuring, Poolin plans to sell its US mining assets through a court-supervised auction process. Thor CALAP LLC has submitted a $52 million stalking-horse bid to establish a floor price for competing offers.
The proposal allocates $15 million for the Pyote property and related assets, with an additional $37 million designated for Tarbush power rights and equipment. The court process could attract higher competing bids, and buyers may also purchase the properties separately if that approach yields better recoveries for creditors. Given that customer IOUs represent roughly 95% of the estimated $173.1 million in obligations, unsecured creditors face significant uncertainty about recovery levels.
Poolin's collapse underscores the enduring fallout from the 2022 crypto downturn, which devastated numerous mining operations and lending platforms that had overleveraged themselves during the prior bull market. The wave of bankruptcies that followed—including filings by industry participants such as Compute North and Core Scientific—reshaped the mining sector, pushing many distressed assets into court-supervised sales similar to the auction Poolin now pursues.
