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Bitcoin Miner Poolin Files for Chapter 11 Bankruptcy

Created at 24 Jul · 8:51 AM1 source↑ Market-relevant
IN SHORT

Singapore-based Bitcoin mining pool Poolin and two U.S. affiliates have filed for Chapter 11 bankruptcy, citing liabilities between $100 million and $500 million. The company is also seeking court approval to sell two West Texas mining sites for $52 million.

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Key Numbers

$100 million to $500 millionPoolin's estimated liabilities
$1 million to $10 millionPoolin's estimated assets
10,001 to 25,000Poolin's estimated creditors
$52 millionProposed sale price for West Texas mining sites
$37 millionTarbush assets sale price
$15 millionPyote site sale price
September 8Bid deadline for mining site auction
0.2%Poolin's current market share by hashrate

Who's Involved

Poolin
Singapore-based Bitcoin mining pool filing for Chapter 11 bankruptcy
Thor CALAP LLC
Proposed buyer for Poolin's West Texas mining sites
Hashrate Index
Source for Bitcoin mining pool market share data
NFN8 Group
Bitcoin mining operation that previously filed for bankruptcy
Bitfarms
Bitcoin miner pivoting to AI and high-performance computing data centers
Hut 8
Bitcoin mining company with AI infrastructure deals
IREN
Company disclosing cloud services contracts with AI developers
MARA Holdings
Company planning to acquire a Texas site for AI and digital infrastructure
Bernstein
Wealth management company commenting on AI infrastructure needs

↳ Why This Matters

Poolin's bankruptcy filing highlights the ongoing financial strain on Bitcoin mining operations due to high electricity costs and market conditions, signaling potential consolidation or strategic shifts within the industry towards areas like AI infrastructure.

Key facts

  • Bitcoin mining pool Poolin and two U.S. affiliates filed for Chapter 11 bankruptcy in New Jersey.
  • Poolin's liabilities are estimated between $100 million and $500 million.
  • The company seeks to sell two West Texas mining sites for $52 million to Thor CALAP LLC.
  • The sale is subject to a court-supervised auction with a bid deadline of September 8.
  • Poolin was previously the world's largest Bitcoin mining pool but now holds a 0.2% market share.

Singapore-based Bitcoin mining pool Poolin, along with two of its U.S. affiliates, has filed for Chapter 11 bankruptcy in a New Jersey court. The filing reveals estimated liabilities ranging from $100 million to $500 million, with assets between $1 million and $10 million, and between 10,001 and 25,000 creditors. As part of its creditor recovery plan, Poolin is seeking court approval to sell two West Texas mining sites to Thor CALAP LLC for a proposed $52 million. This includes $37 million for the Tarbush assets and $15 million for the Pyote site, encompassing power rights, equipment, and other related assets. The sale will be subject to a court-supervised auction, with a bid deadline set for September 8. Poolin, which was once the world's largest Bitcoin mining pool in 2019, now ranks as the 17th largest by hashrate, holding a 0.2% market share according to Hashrate Index. The cryptocurrency mining industry is facing financial pressures from rising electricity costs, leading some operations to restructure or pivot. In February, NFN8 Group and its affiliates also filed for Chapter 11 bankruptcy. Other miners are diversifying into AI infrastructure, with Bitfarms planning to wind down Bitcoin mining operations to focus on AI data centers. Recently, Hut 8 and IREN announced significant AI infrastructure deals, and MARA Holdings revealed plans to expand its AI and digital infrastructure business.

Frequently asked questions

Chapter 11 bankruptcy is a form of U.S. bankruptcy that allows a business to reorganize its debts and operations while continuing to function, aiming for a future creditor recovery program.

Bitcoin miners are experiencing financial constraints due to rising electricity costs, which are a significant operational expense for powering mining hardware.

A stalking-horse bid is the initial bid on a bankrupt company's assets that sets the minimum price for an auction, encouraging higher bids from other potential buyers.

What Happens Next

01A court-supervised auction for Poolin's West Texas mining sites will take place.
02A bid deadline of September 8 is set for the mining site auction.

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Cadence

How It Developed

Poolin and two U.S. affiliates filed for Chapter 11 bankruptcy.
The company has estimated liabilities of $100 million to $500 million.
Poolin is seeking court approval to sell two West Texas mining sites for $52 million.
The sale is subject to a court-supervised auction with a bid deadline of September 8.
Poolin was once the world's largest Bitcoin mining pool in 2019 but now ranks 17th.
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Sources

T1
Bitcoin mining pool Poolin files for Chapter 11 bankruptcyBitcoin miner Poolin filed for Chapter 11 bankruptcy and initiated a $52 million sale of its two West Texas mining sites as part of its future creditor recovery program.Cointelegraph

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