Bitcoin Miner Poolin Technology Files Chapter 11 With $173M Debt as $52M Asset Sale Moves Forward

Bitcoins Debt and Affected Users

Poolin Technology, once a dominant Bitcoin mining pool operator, has filed for Chapter 11 bankruptcy protection and is seeking court approval to sell its remaining U.S. mining assets and wind down operations. The Singapore-based company and its U.S. affiliates, including Lonestar Dream and Lonestar Taproot, filed voluntary petitions on July 22 in the U.S. Bankruptcy Court for the District of New Jersey.

The filing lists estimated liabilities between $100 million and $500 million, against estimated assets of $1 million to $10 million. Court records indicate total debt stands at roughly $173 million, with approximately $163.7 million in unsecured promissory notes issued to wallet customers after the company suspended withdrawals during the 2022 cryptocurrency market downturn.

Around 11,700 wallet holders with balances exceeding $100 remain affected by the frozen funds.

As part of the court-supervised liquidation, Poolin has reached separate stalking-horse asset purchase agreements totaling $52 million with Thor CALAP LLC for its two West Texas mining infrastructure facilities. Under the proposed transaction, the Pyote site is valued at $15 million, while the Tarbush facility’s power rights and equipment are valued at $37 million.

The bidding process will remain subject to court approval and higher or better offers. Poolin noted in court filings that growing demand for artificial intelligence data infrastructure could attract additional interest in the sites’ power capacity and hardware.

According to reports, Poolin’s financial distress dates back to China’s May 2021 ban on cryptocurrency mining, which disrupted the company’s legacy operations. Subsequent attempts to pivot toward mining infrastructure in West Texas were hindered by lower-than-expected power allocations, equipment overorders, and $8.8 million in hardware sales losses between fiscal years 2023 and 2025.

In mid-2022, sharp declines in bitcoin prices triggered margin calls from lenders, forcing Poolin Wallet to pledge digital assets as collateral. In September 2022, the company declared a liquidity crisis and halted withdrawals, replacing customer deposits with IOUs. A further crypto price drop in late 2022 led to collateral liquidations by lenders.

Poolin permanently halted all mining and hosting operations on July 10, 2026, retaining only a minimal workforce to secure equipment and facilitate the asset sale process. The company stated it has no plans to resume operations and will use proceeds from the bankruptcy sale to satisfy creditor claims under a liquidating plan.