Poolin, the Singapore-based cryptocurrency mining firm that once commanded nearly one-fifth of Bitcoin’s global hashrate, has filed for Chapter 11 bankruptcy protection amid mounting debts totaling between $164 million and $173 million. The filing represents one of the most significant collapses in the cryptocurrency mining sector to date, affecting thousands of individual investors who utilized the platform’s wallet services.
The bankruptcy filing reveals that Poolin owes approximately 11,700 users, with the company’s total claims reaching $173 million according to court documents cited by CoinDesk and The Block. CryptoSlate reports the debt figure at $164 million, noting that signed offers currently equal 31.8% of wallet IOUs in gross arithmetic before accounting for estate boundaries, liens, and bankruptcy costs.
As part of the restructuring process, Poolin has initiated a court-supervised sale of its Texas-based mining infrastructure. The company has established a $52 million stalking-horse bid serving as a floor price for these assets, according to The Block. This move represents an attempt to monetize the firm’s remaining physical infrastructure while maximizing value for creditors during the Chapter 11 proceedings.
Poolin’s descent into bankruptcy marks a dramatic reversal for the firm that once stood as Bitcoin’s largest mining pool. At its peak, the company controlled approximately 20% of the network’s total computational power, making it a dominant force in the cryptocurrency mining sector. The Singapore-based entity’s collapse highlights the ongoing consolidation pressures facing the mining industry, particularly following Bitcoin’s halving events and fluctuating energy costs that have squeezed profit margins for operators across the globe.
The bankruptcy specifically impacts thousands of individual users who held wallet balances with the platform. With nearly 12,000 creditors seeking repayment, the distribution of remaining assets will likely involve complex negotiations between the bankruptcy estate, secured lenders, and unsecured user claims. The discrepancy in reported debt figures—ranging from $164 million to $173 million—reflects the complexity of accounting for various claim categories and potential contingent liabilities within the estate.
The Texas mining facility sale represents a critical component of Poolin’s asset liquidation strategy. Mining infrastructure in Texas has become increasingly valuable due to the state’s deregulated energy market and access to renewable power sources, though the $52 million floor bid suggests a significant discount from the facility’s potential peak valuation during the height of the crypto mining boom. The outcome of this auction will likely determine the recovery percentage available to the thousands of users holding IOUs against the defunct mining giant.