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Bitcoin mining pool Poolin has filed for Chapter 11 protection with two U.S. affiliates, seeking to sell its West Texas assets and wind down operations.
Singapore-based Poolin Technology, Lonestar Dream and Lonestar Taproot filed on July 22 in New Jersey. Poolin listed assets of $1 million to $10 million, liabilities of $100 million to $500 million and between 10,001 and 25,000 creditors.
Wallet Customers Hold $163.7M in Unsecured IOUs
Chief Restructuring Officer Michael DuFrayne placed the group’s pre-bankruptcy obligations at about $173.1 million. About $163.7 million consists of unsecured IOUs issued to Poolin Wallet customers after the platform suspended withdrawals in September 2022.
Poolin Wallet offered crypto-backed USDT loans and interest-bearing deposits. During the 2022 market downturn, Poolin borrowed about $213 million from Antalpha against digital assets then valued at roughly $355.8 million.
About 11,700 Customers Still Have Frozen Balances
The loan proceeds funded customer withdrawals, interest payments, mining machines, operating expenses and development of the Texas facilities. Antalpha liquidated the collateral in November 2022.
About 11,700 wallet customers still held frozen balances above $100 when Poolin entered bankruptcy. Those customers make up the largest creditor group and face uncertain recoveries through the Chapter 11 process.
Thor CALAP Offers $52M for Two Texas Sites
Poolin has entered separate asset purchase agreements with Thor CALAP covering its Pyote and Tarbush operations. Thor offered $15 million for the Pyote property and associated assets.
It also offered $37 million for equipment and power rights tied to Tarbush. The combined $52 million proposal will serve as a stalking-horse bid, setting the minimum value for competing offers.
Poolin Contacted 335 Potential Buyers
The sites may be sold together or separately if another structure produces a better return. Poolin contacted more than 335 potential buyers during a three-month process focused on crypto miners, AI infrastructure operators and other data center investors.
Any higher bid will have to exceed the stalking-horse proposal and receive bankruptcy court approval.
Mining Stopped After $45.9M in U.S. Losses
Lonestar Dream stopped mining and hosting at both sites on July 10. A limited workforce remains to secure equipment and support the sale process.
The U.S. affiliates recorded about $45.9 million in cumulative losses. Poolin cited restricted power allocations, equipment overordering, construction delays, Bitcoin volatility and declining access to mining finance.
Poolin does not plan to restart the Texas facilities. Competing bids are due by September 8 under the proposed schedule. Creditor recoveries will depend on the auction price, bankruptcy expenses and approval of a liquidating plan.
