Poolin Files Chapter 11 Bankruptcy Amid Cost Pressures

Poolin, the Singapore-based Bitcoin mining pool operator, has filed for Chapter 11 bankruptcy in New Jersey. The company and its two US affiliates are seeking to restructure their debt amid rising cost pressures, particularly electricity costs.

The bankruptcy filing includes liabilities estimated between $100 million and $500 million and assets valued at between $1 million and $10 million. This wide range underscores the uncertainty associated with mining restructurings, which can be volatile due to fluctuating energy prices and variable operating expenses.

Poolin is pursuing a $52 million sale of two West Texas mining sites to Thor CALAP LLC through a proposed stalking-horse bid. The sale would cover Tarbush assets for $37 million, including assumed liabilities, and the Pyote site for $15 million, including power rights and equipment.

The company's filing marks a significant shift in the industry landscape, with Poolin currently ranking as the 17th largest mining pool operator by hashrate, down from its former position as the world's largest Bitcoin mining pool.