Poolin, once a leading Bitcoin mining pool globally, has entered bankruptcy proceedings. Company disclosures show that Poolin Technology filed for Chapter 11 bankruptcy protection in the United States on July 22. The court will oversee the disposal and liquidation of its assets, one of its core assets being its two mining farms in Texas.
Debt exceeds assets
According to documents filed in the U.S. Bankruptcy Court in New Jersey, the application covers Poolin, a Singapore-registered entity, and two U.S. affiliates, Lonestar Dream Inc. and Lonestar Taproot LLC. The documents show that the entities had total debts exceeding $100 million prior to the filing, while their book assets were less than $10 million.
Founded in Beijing in 2017 by former Bitmain employees, Poolin has grown into one of the world's largest Bitcoin mining pools. At its peak, the platform controlled nearly one-fifth of the network's hashrate. It later expanded into crypto lending and interest-bearing account services and launched Poolin Wallet.
11,700 users become the largest creditors
The largest single liability in the company's bankruptcy comes from previously frozen wallet user funds. Court documents show that approximately 11,700 wallet holders are owed a total of $163.7 million, stemming from a withdrawal freeze in September 2022.
At the time, Poolin suspended withdrawals for Poolin Wallet and Pool Account users, citing liquidity pressures. The company subsequently used IOU tokens as collateral for the Bitcoin debts, but these debts have remained unpaid ever since.
- Application Date: July 22, 2026
- User-related debts: Approximately US$163.7 million
- Number of users involved: Approximately 11,700
Texas mine to be auctioned
To recoup funds, Poolin is moving forward with the sale of its two mines in West Texas. Thor CALAP LLC has submitted a $52 million "reserve bid," which will serve as the starting price in a court-supervised auction, with other bidders required to increase their offers above this amount.
However, this offer only covers the physical infrastructure of the mining farm and does not include the frozen wallet balance; the amount is also significantly lower than the total amount owed to users. The documents also show that Poolin's Texas mining and hosting business, operated through Lonestar Dream, ceased operations entirely on July 10th, and the company has no intention of resuming operations.
The mining operation has been losing money for several consecutive years.
Court documents show that the two Texas operations have accumulated losses of approximately $45.9 million since they began operations. In addition, the company incurred further losses of approximately $8.8 million from selling equipment at a discount between fiscal years 2023 and 2025.
This means that how much money the approximately 11,700 users holding IOU certificates will ultimately recover will largely depend on the outcome of the Texas mining auction. It has been over three years since Poolin first froze withdrawals.
