Poolin Files For Bankruptcy Amid Rising Industry Pressure
Singapore-based Bitcoin mining pool Poolin and its US affiliates have filed for Chapter 11 bankruptcy in a New Jersey court. The move is part of a larger trend of struggling Bitcoin miners seeking relief from financial constraints.
Poolin's court filing estimates liabilities between $100 million to $500 million, with assets valued at $1 million to $10 million and between 10,001 and 25,000 creditors. The company is also seeking approval for the sale of two West Texas mining sites to Thor CALAP LLC in a proposed $52 million stalking-horse bid.
The deal includes $37 million for the Tarbush assets, including assumed liabilities, and $15 million for the Pyote site, including power rights, equipment, and all other assets tied to the facilities. A court-supervised auction will follow if the sale is approved, with a bid deadline of September 8.
Poolin's ranking as the world's largest Bitcoin mining pool in 2019 highlights the challenges faced by the industry today. As electricity costs rise, many miners are struggling to stay profitable, forcing some operations to shut down and others to seek new revenue streams.