Poolin Auction Reopens as Hut 8 Deal Ties $80 Million to Data Center Milestones

A New Jersey bankruptcy judge has approved another round of bidding for Poolin's Texas mining assets after a dispute over the selection of Hut 8 (NASDAQ: HUT). The auction is set to reopen on October 2, with competing bids due by October 1. According to the order, Hut 8's affiliates remain the baseline buyers under agreements worth up to $180 million, comprising $100 million at closing and $80 million contingent on qualifying data center transactions.

The conditional payments are tied to the race for AI computing capacity, with milestone payments triggered by qualifying data-center leases using the acquired power rights. The definition covers AI, high-performance computing, cloud, and colocation facilities, while excluding facilities primarily used for cryptocurrency mining.

Poolin's Chief Restructuring Officer Michael DuFrayne said negotiations with Thor CALAP stalled over a larger deposit, provisions giving the buyer discretion over energy approvals and title. Poolin then negotiated with Hut 8 and selected a $140 million transaction, arguing that greater certainty of closing outweighed Thor's higher stated price.

Hut 8 describes interconnections, substations, and other electrical infrastructure as the foundation of its data-center development business. Poolin's transaction would put a substantial portion of creditors' potential proceeds behind the subsequent commercialization of those power rights.