Former global Bitcoin mining leader Poolin Technology and its affiliated entities have officially filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. The court filing marks the operational end of a multi-year decline that began with China’s 2021 crypto mining ban and escalated through severe liquidity bottlenecks across its international mining pools and lending arms. Rather than attempting to reorganize its ongoing operations, the company has ceased all digital asset mining and hosting services to pursue an orderly, court-supervised sale of its core infrastructure assets.
Unsecured Wallet Claims and Failed Power Contracts Collapse the Balance Sheet
The primary catalyst for Poolin’s financial collapse stems from a compound series of liquidity events and mounting operational losses spanning both its Asian and North American divisions. During the height of the 2022 crypto market contraction, Poolin Wallet suffered a severe liquidity crisis, forcing management to freeze user withdrawals and issue approximately $163.7 million in unbacked IOUs to nearly twelve thousand customers. While the firm attempted to navigate these debts by relocating its focus to West Texas, its American hosting and self-mining operations were severely hampered by power grid constraints.
In anticipation of receiving up to 600 megawatts of capacity, Poolin overordered expensive mining hardware that could not be fully deployed when initial utility allocations were capped at just 100 megawatts. This infrastructure bottleneck forced the company to sell surplus equipment at steep discounts, generating millions in losses. With cumulative operational losses across its American subsidiaries reaching nearly $46 million, rising network difficulty, and ongoing cross-border litigation from IOU holders, the company ultimately closed its remaining facilities and sought bankruptcy court relief.
Stalking-Horse $52 Million Bid Floor Sets Stage for Texas Infrastructure Sale
To maximize recovery for its creditors, Poolin has entered into a stalking-horse asset purchase agreement with Thor CALAP LLC for a combined valuation of $52 million. The independent transaction breaks down into a $15 million purchase agreement for the company’s Pyote site and a $37 million agreement covering its Tarbush facility assets and valuable electrical power rights in Texas. By establishing this stalking-horse floor, the estate aims to conduct an open marketing process that allows prospective bidders to acquire the sites individually or as a combined parcel.
The bankruptcy estate believes that growing demand for high-density computing infrastructure and artificial intelligence data centers could drive competitive bidding above the initial $52 million baseline. Under the oversight of a court-appointed chief restructuring officer, Poolin has retained a minimal workforce purely to secure its physical assets, maintain site safety, and facilitate the auction process. While unsecured creditors face a long recovery timeline, the structured liquidation underscores how historical debt leverage and unhedged balance sheets continue to clear out legacy operators from the mining sector.
