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

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

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

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

Currently, Poolin has signed an Asset Purchase Agreement with Thor CALAP LLC, which has offered to acquire the related mining assets for $52 million. This includes: $15 million for the Pyote mine, related power rights, and equipment; and $37 million for the Tarbush mine's power rights and equipment. This offer will serve as a "stalking horse bid" in the bankruptcy auction, setting a minimum price for subsequent bids. The transaction is still subject to higher bids and court approval. (Theenergymag)