Poolin, once the world’s largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection in the United States after years of financial turmoil stemming from the 2022 crypto market crash. The Singapore-based company disclosed approximately $173.1 million in liabilities and plans to sell its remaining mining assets in Texas, marking the latest high-profile casualty of the industry’s prolonged shakeout.

The bankruptcy petition, filed on July 22 in the U.S. Bankruptcy Court for the District of New Jersey, covers Poolin Technology and its U.S. subsidiaries, Lonestar Dream and Lonestar Taproot. Court filings estimate the company’s assets at just $1 million to $10 million, compared with liabilities ranging from $100 million to $500 million, with actual debt totaling about $173.1 million.

Bitcoin Mining Pool Poolin Files for Bankruptcy With $173M Debt

Frozen Wallet Funds Drive Most of the Debt

The bulk of Poolin’s liabilities stems from its decision to freeze withdrawals from Poolin Wallet during the crypto market collapse in September 2022.

According to court documents, roughly $163.7 million of the debt consists of unsecured IOUs issued to wallet users after withdrawals were suspended. Around 11,700 customers with balances exceeding $100 were unable to access their funds and instead received promissory notes representing future repayment claims.

The liquidity crisis unfolded as the cryptocurrency market reeled from the collapses of Terra-LUNA, Three Arrows Capital, Voyager Digital, and FTX. As digital asset prices plunged, Poolin struggled to meet withdrawal requests, leaving thousands of users locked out of their accounts. Some customers later pursued legal action in the United States and Singapore to recover their assets.

Texas Mining Assets Headed for Sale

As part of the Chapter 11 process, Poolin is seeking court approval to sell two Bitcoin mining facilities in West Texas for a minimum of $52 million.

The proposed buyer, Thor CALAP LLC, has signed stalking-horse agreements covering the company’s facilities in Pyote and Tarbush. The sale will proceed under Section 363 of the U.S. Bankruptcy Code, allowing higher competing bids before the transaction is finalized. Proceeds will be used to repay creditors through the bankruptcy process.

Poolin permanently ceased mining and hosting operations on July 10, retaining only a small team to secure equipment and support the court-supervised asset sale.

From Market Leader to Insolvency

Founded in China in 2017, Poolin rapidly became one of the fastest-growing Bitcoin mining companies. By 2019, it had surpassed competitors including F2Pool and BTC.com to become the world’s largest Bitcoin mining pool.

Its fortunes changed after China banned cryptocurrency mining in 2021, forcing the company to relocate much of its business overseas and invest heavily in mining infrastructure in Texas.

Court filings show Poolin borrowed approximately $213 million, backed by customer digital assets once valued at nearly $356 million. The financing supported construction of mining facilities, equipment purchases, customer withdrawals, and operating expenses.

When crypto prices continued falling in 2022, the collateral rapidly lost value. Lenders ultimately liquidated much of the pledged crypto, intensifying Poolin’s liquidity crisis.

Costly Expansion Strategy

Beyond the crypto downturn, Poolin’s aggressive expansion also contributed to its collapse.

The company expected to secure up to 600 megawatts of electricity for its Texas operations and ordered large quantities of mining equipment. However, it initially received only around 100 megawatts of power capacity, forcing it to sell excess mining rigs at discounted prices.

Between 2023 and 2025, Poolin recorded approximately $8.8 million in losses from disposing of surplus equipment.

Court documents also note that the company’s power infrastructure may now hold greater value for artificial intelligence and high-performance computing operators than for Bitcoin mining, potentially attracting additional interest during the bankruptcy auction.

A Sign of Ongoing Industry Consolidation

Poolin’s bankruptcy underscores how the fallout from the 2022 crypto crisis continues to reshape the mining sector despite Bitcoin’s price recovery.

Mining companies remain under pressure from higher operating costs, reduced block rewards following the latest Bitcoin halving, and increasing competition. Many are also exploring opportunities to repurpose power infrastructure for AI data centers in search of more stable revenue.

For Poolin’s creditors, recovery will depend largely on the final value realized from the Texas asset sale and the outcome of the Chapter 11 proceedings.

Once the world’s largest Bitcoin mining pool, Poolin’s collapse highlights how rapidly market leaders can falter when aggressive expansion collides with prolonged downturns and mounting liquidity pressures.