Poolin files for Chapter 11 bankruptcy, seeks sale of Texas cryptomining assets

Cryptocurrency mining pool operator Poolin, together with two US affiliates, has filed for Chapter 11 bankruptcy protection and is seeking court-approved sales of its West Texas mining assets, according to petitions submitted late last month. The move marks a significant unraveling for a company once regarded as the world's largest cryptocurrency mining pool.

Singapore-based Poolin Technology Pte Ltd, along with Lonestar Dream Inc and Lonestar Taproot LLC, filed voluntary petitions on July 22 in the US Bankruptcy Court for the District of New Jersey. The filings come after Lonestar Dream ceased all mining and hosting operations at its Pyote and Tarbush facilities on July 10, retaining only a limited workforce to secure the properties and support the sale process.

The debtors have entered into two asset purchase agreements with Thor CALAP LLC, which has offered $15 million for the Pyote property, including its associated power rights and equipment, and $37 million for the power rights and equipment at the Tarbush site. The Tarbush transaction does not include the facility's surface-use agreement. Thor's combined $52 million offer will serve as a stalking-horse bid, establishing the minimum price for the assets during the bankruptcy auction. The two transactions can proceed independently and remain subject to higher offers and court approval.

According to a declaration filed by chief restructuring officer Michael DuFrayne, the companies contacted more than 335 potential buyers and investors during a three-month marketing process. The campaign targeted cryptocurrency miners alongside AI and high-performance computing operators, hyperscalers, data center infrastructure companies, real estate investment trusts, and private equity firms. It resulted in 28 non-disclosure agreements and seven letters of intent, reflecting broad interest in the assets despite the company's financial distress.

Poolin's petition estimates that the company has between 10,001 and 25,000 creditors, assets of between $1 million and $10 million, and liabilities ranging from $100 million to $500 million. DuFrayne put the debtors' total pre-bankruptcy obligations at approximately $173.1 million. Around $163.7 million of that amount relates to unsecured IOUs issued to roughly 11,700 Poolin Wallet customers after withdrawals were suspended during the 2022 cryptocurrency downturn.

Poolin was founded in China in 2017 and rose to prominence as the world's largest cryptocurrency mining pool by September 2019. The company began relocating mining equipment overseas following China's 2021 ban on cryptocurrency mining. Its US affiliates subsequently developed the Pyote facility in Ward County and the Tarbush site in Pecos County. The projects were initially expected to receive up to 600MW from Texas-New Mexico Power but were ultimately allocated only 100MW.

Poolin had ordered equipment based on the larger projected allocation and later sold surplus miners at a loss. Unaudited accounts cited in the bankruptcy declaration show approximately $8.8 million in equipment-sale losses between fiscal 2023 and 2025, underscoring the financial strain caused by the mismatch between planned capacity and actual power availability.

The bankruptcy case highlights ongoing volatility in the cryptocurrency mining sector, where operators face intense pressure from fluctuating digital asset prices, rising energy costs, and infrastructure constraints. The sale of Poolin's Texas assets, if completed, could provide a template for how distressed mining infrastructure is repurposed, potentially attracting buyers from adjacent industries such as AI and high-performance computing, which are actively seeking power-rich sites across the United States.