Poolin Files for Chapter 11 as Texas Assets Go Up for Auction
Poolin, one of the world's largest bitcoin mining pools, has filed for Chapter 11 bankruptcy protection in the US. The company is seeking to sell its Texas-based assets through a court-supervised auction. Poolin owes around $173 million in pre-petition obligations, with about $163.7 million related to IOUs issued after wallet withdrawals were suspended in 2022.
The company's mining and hosting operations at the Pyote and Tarbush facilities in West Texas ended on July 10. A stalking-horse bid of $52 million has been made by Thor CALAP LLC, covering both sites. Court filings note that the stalking-horse agreements set the minimum price for the auction while allowing higher competing offers.
Poolin's bankruptcy comes as interest from AI infrastructure operators increases the value of its assets. The company's power capacity and existing electrical systems are attractive to buyers outside the cryptocurrency industry. Poolin accumulated losses of around $45.9 million since its formation, and its business model was under pressure after China prohibited bitcoin mining in 2021.