Bitcoin Mining Giant Poolin Faces Bankruptcy After Losing Industry Dominance

Poolin, a former heavyweight in the Bitcoin mining industry, has entered bankruptcy proceedings after losing much of its market influence. The Singapore-based company once accounted for nearly one-fifth of Bitcoin’s global mining power but is now dealing with about $173 million in liabilities and moving toward asset sales.

The firm, along with its U.S. subsidiaries Lonestar Dream and Lonestar Taproot, filed for Chapter 11 bankruptcy protection in New Jersey. The companies reported estimated liabilities ranging from $100 million to $500 million.

Poolin’s July 22 filing revealed approximately $173 million in outstanding debt as it seeks protection from creditors and attempts to reorganize its operations.

A buyer has already shown interest in acquiring some of Poolin’s remaining infrastructure. Thor CALAP LLC has reportedly offered $52 million for two Bitcoin mining facilities in West Texas, which account for a large share of the company’s remaining assets.

At its peak, Poolin was one of the biggest Bitcoin mining pools worldwide, with a significant portion of miners directing computing power through its platform. According to Glassnode data, Poolin controlled around 18% to 20% of Bitcoin’s total network hashrate in 2019.

The company’s financial difficulties became public in 2022 when users began complaining about delayed withdrawals on Poolin’s Telegram channels during a period of widespread liquidity stress across the crypto industry. Co-founder Kevin Pan acknowledged that the company was facing liquidity challenges but assured customers that their funds were protected.

Poolin’s efforts to recover through a major Texas mining expansion also struggled, as delays in receiving grid connection approvals slowed the rollout of new facilities.

In September 2022, Poolin Wallet suspended withdrawals and issued approximately $163.7 million in IOU tokens to about 11,700 users, giving the company additional time to address its financial problems.

Since then, Poolin’s position in Bitcoin mining has collapsed, with its share of the network’s hashrate falling to virtually zero for several years.

The company has yet to provide further details regarding the bankruptcy process or its future operations.