Poolin’s Bankruptcy Signals Deepening Pressure Across the Bitcoin Mining Sector

Poolin, once a leading force in Bitcoin mining, has filed for bankruptcy after a dramatic decline in its industry standing. The Singapore-based mining company previously controlled nearly 20% of Bitcoin’s global hashrate but now faces roughly $173 million in liabilities and is looking to sell its remaining assets.

The company and its two U.S. affiliates, Lonestar Dream and Lonestar Taproot, filed for Chapter 11 protection in New Jersey, with total estimated liabilities reported between $100 million and $500 million.

Poolin’s bankruptcy filing, submitted on July 22, lists around $173 million in debt as the company seeks to restructure while addressing its financial obligations.

A potential deal for its remaining infrastructure is already underway, with Thor CALAP LLC reportedly submitting a $52 million bid for two Bitcoin mining sites in West Texas. These facilities represent a major portion of Poolin’s remaining assets.

At its peak, Poolin was one of Bitcoin’s most powerful mining pools, ranking among the largest contributors to the network’s computing power. Data from Glassnode shows that Poolin’s share of Bitcoin’s total hashrate reached approximately 18% to 20% in 2019.

The company’s troubles emerged in 2022 when users began reporting withdrawal delays through Poolin’s Telegram channels during a wider crypto liquidity crisis. Co-founder Kevin Pan later confirmed that the company was experiencing liquidity issues but said customer assets were secure.

Poolin’s planned expansion in Texas, which was expected to help restore growth, was also delayed due to difficulties obtaining grid connection approvals.

In September 2022, Poolin Wallet suspended withdrawals and issued about $163.7 million worth of IOU tokens to roughly 11,700 customers as part of efforts to manage its liquidity shortage.

The company’s influence in the Bitcoin mining sector has since faded significantly, with its estimated contribution to the network’s hashrate remaining effectively negligible for several years.

Poolin has not issued a statement addressing the bankruptcy filing or its future plans.