Bitcoin mining pool Poolin files for bankruptcy protection, plans to sell Texas mining assets for $52 million

Odaily reported that Bitcoin mining pool Poolin has filed for Chapter 11 bankruptcy protection in a US court and plans to cease operations by selling its Bitcoin mining assets in Texas, USA. According to court documents, Poolin and its two US affiliates, Lonestar Dream Inc. and Lonestar Taproot LLC, filed for voluntary bankruptcy on July 22 with the US Bankruptcy Court for the District of New Jersey. Poolin currently estimates it has between 10,000 and 25,000 creditors, with assets ranging from approximately $1 million to $10 million and liabilities between approximately $100 million and $500 million.

Michael DuFrayne, Poolin's Chief Restructuring Officer, stated that the company's pre-bankruptcy debt amounts to approximately $173.1 million, of which about $163.7 million consists of unsecured IOU debts issued to Poolin Wallet users following the suspension of withdrawals during the crypto market crash in 2022.

This Chapter 11 process is not intended to reorganize the business but to facilitate the sale of assets under court supervision. Poolin's Pyote and Tarbush mining sites in Texas ceased mining and hosting operations on July 10, retaining only a small number of employees to maintain the assets and advance the sale process.

Currently, Poolin has entered into an asset purchase agreement with Thor CALAP LLC, which has proposed to acquire the related mining assets for $52 million. This includes: $15 million for the Pyote site, along with associated power rights and equipment; and $37 million for the power rights and equipment at the Tarbush site. This offer will serve as a "stalking horse bid" in the bankruptcy auction, setting a minimum price for subsequent bids. The transaction remains subject to higher offers and court approval. (Theenergymag)