The announcement reveals that Poolin, once a leading global Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection in the United States, along with its US affiliate. The company is proceeding with the auction of two mining assets in western Texas and plans to use the proceeds to repay creditors.
A starting bid of $52 million has been received.
According to disclosures, the auction of the two mines has received a starting bid of $52 million from Thor CALAP LLC. Chapter 11 proceedings typically allow companies to restructure debt, dispose of assets, and negotiate subsequent arrangements with creditors under court supervision.
This sale is part of Poolin's disposal of its U.S. mining assets. If the auction is successfully completed, the proceeds will be used primarily to pay off debts in the bankruptcy proceedings.
Wallet customers are included in the repayment list
The company disclosed that, in addition to general creditors, approximately 11,700 wallet customers are also among those owed debts. Documents show that these customers are owed a total of approximately $163.7 million.
This means that the proceeds from the mine auction are not only related to the company's asset restructuring, but also to the progress of recovering funds from previous platform users.
- The wallet has approximately 11,700 customers.
- The total amount owed is approximately US$163.7 million.
- The initial offer was $52 million.
Mining pool business was once among the top in the industry.
Poolin was once one of the world's largest Bitcoin mining pools, but its business has been under continuous pressure since then. The report mentions that the company was significantly impacted after China cracked down on cryptocurrency mining in 2021.
Subsequently, the cryptocurrency market downturn and rising energy costs in 2022 further squeezed the operating space for mining companies. Under the combined pressure, Poolin eventually went into bankruptcy reorganization and began selling its US mining assets to raise funds.
Additional information:Chapter 11 bankruptcy does not usually mean immediate liquidation. Under the supervision of the court, the company can continue to proceed with asset sales, debt restructuring and creditor repayment arrangements.
