Bitcoin mining company Poolin, once one of the world’s largest mining pools, has filed for bankruptcy after its market share collapsed. The Singapore-based firm, which previously controlled nearly one-fifth of Bitcoin’s global hashrate, now faces around $173 million in debt and is moving to sell its remaining assets.
Poolin, along with its two U.S. affiliates Lonestar Dream and Lonestar Taproot, filed for bankruptcy protection with estimated liabilities ranging between $100 million and $500 million, according to reports.
The company submitted its Chapter 11 filing in New Jersey on July 22, listing approximately $173 million in outstanding obligations.
A $52 million offer from Thor CALAP LLC is currently being considered for two Bitcoin mining facilities in West Texas, which represent a significant portion of Poolin’s remaining assets.
At its peak, Poolin ranked among the most powerful Bitcoin mining pools globally, processing a larger share of network activity than almost any other mining group. Data from Glassnode shows that Poolin’s share of Bitcoin’s global hashrate reached approximately 18% to 20% in 2019.
However, signs of financial stress emerged in late 2022 as customers began reporting withdrawal delays through Poolin’s Telegram channels during a broader crypto liquidity crisis. Co-founder Kevin Pan acknowledged at the time that the company was experiencing liquidity challenges but maintained that customer funds remained secure.
The company’s planned expansion into Texas, which Pan viewed as a path toward recovery, also faced setbacks after delays in obtaining grid connection approvals.
In September 2022, Poolin Wallet halted withdrawals completely and issued around $163.7 million worth of IOU tokens to approximately 11,700 users, providing temporary relief while the company attempted to stabilize its finances.
Since then, Poolin’s estimated share of Bitcoin network hashrate has fallen to virtually zero for several years.
Poolin did not provide a response to requests for comment.
