From Industry Leader to Bankruptcy

Poolin Technology, which at its peak in 2019 commanded nearly 20 percent of Bitcoin's global hashrate as the world's largest mining pool, has filed for Chapter 11 bankruptcy protection. The Singapore-based company and its U.S. affiliates, Lonestar Dream and Lonestar Taproot, submitted voluntary petitions on July 22, 2026, in the U.S. Bankruptcy Court for the District of New Jersey.

Court documents list estimated liabilities of approximately $173 million against assets valued between $1 million and $10 million. The filing marks the culmination of years of financial challenges that began after China's 2021 cryptocurrency mining ban forced the company to relocate operations.

Wallet Customers Bear the Brunt

The bulk of Poolin's debt stems from its wallet service. Around 11,700 customers hold $163.7 million in unsecured IOUs issued after the company suspended withdrawals in September 2022 amid a severe liquidity crunch during the broader cryptocurrency market downturn.

These frozen funds represent the largest single category of claims in the bankruptcy case. Customers who had deposited assets seeking yields tied to the prominent mining pool now face an uncertain recovery path dependent on asset sale proceeds.

Texas Mining Sites Targeted for Sale

As part of the proceedings, Poolin has secured a $52 million stalking-horse bid from Thor CALAP LLC for its two West Texas mining facilities. The Pyote site carries a $15 million valuation, while the Tarbush location, including power rights and equipment, is priced at $37 million.

The proposed sale will proceed through a court-supervised auction, with a bid deadline set for September 8. Poolin has marketed the assets to over 335 potential buyers, including AI data center operators, generating interest from entities seeking power infrastructure amid growing demand beyond traditional mining.

Years of Mounting Pressures

Poolin was founded in China in 2017 and rapidly rose to prominence. The 2021 mining ban prompted a pivot to the United States, where the firm acquired sites in West Texas expecting substantial power capacity. Actual allocations fell short, reaching only about 100 MW against plans for up to 600 MW.

Over-purchasing of equipment, combined with operational deficits totaling tens of millions and losses from hardware sales, exacerbated the situation. The 2022 market collapse triggered margin calls and collateral liquidations, sealing the company's liquidity crisis.

A proposed $49 million acquisition by China Green Agriculture in late 2023 failed to materialize, leaving bankruptcy as the resolution path. The current filing is structured as a liquidating Chapter 11, aimed at winding down operations rather than reorganization.

Broader Context in Bitcoin Mining

Poolin's decline illustrates the intense pressures facing Bitcoin miners, including volatile energy costs, hashrate competition, and shifting market conditions. While the company now holds a negligible share of global hashrate, its story underscores the sector's transition, with some operators exploring AI and high-performance computing opportunities for underutilized power assets.

Creditor recoveries will hinge on the final auction outcomes and court-approved distribution plan, after administrative expenses. The process offers a structured framework for addressing the substantial claims accumulated over recent years.