Bitcoin mining firm Poolin, once a dominant force in the mining industry, has filed for bankruptcy after its share of the global Bitcoin network collapsed. The Singapore-based company previously accounted for nearly 20% of Bitcoin’s hashrate but now faces about $173 million in debt while attempting to liquidate its remaining assets.
Poolin and its two U.S. subsidiaries, Lonestar Dream and Lonestar Taproot, have entered bankruptcy proceedings, with total liabilities estimated between $100 million and $500 million.
The company filed for Chapter 11 bankruptcy protection in New Jersey on July 22, reporting outstanding debts of roughly $173 million.
A potential buyer has already emerged for some of Poolin’s key assets. Thor CALAP LLC has submitted a $52 million proposal to acquire two Bitcoin mining facilities in West Texas, which make up a significant portion of the company’s remaining holdings.
At its height, Poolin was one of the largest Bitcoin mining pools worldwide, with miners contributing more computing power through its network than almost any other pool. Data from Glassnode indicates that Poolin controlled around 18% to 20% of Bitcoin’s total hashrate in 2019.
The company’s decline became apparent in 2022 as customers began reporting delays in withdrawals through Poolin’s Telegram community during a period when many crypto firms struggled with liquidity issues. Co-founder Kevin Pan later confirmed that Poolin was dealing with financial pressure but assured users that their assets were protected.
Poolin’s attempt to revive growth through a major Texas mining expansion also encountered difficulties, with delays in securing required grid connection approvals slowing progress.
In September 2022, Poolin Wallet suspended withdrawals, issuing approximately $163.7 million in IOU tokens to around 11,700 customers as the company worked to manage its liquidity problems.
The company’s influence in Bitcoin mining has since disappeared, with its estimated share of the network’s hashrate remaining close to zero for several years.
Poolin has not issued a public response regarding the bankruptcy filing.
