Bitcoin Mining Pool Poolin Files for Bankruptcy Protection, Plans to Sell Texas Mining Assets for $52 Million

OdailyOdaily reports that 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. affiliated 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 valued between $1 million and $10 million, and liabilities ranging from $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 debt issued to Poolin Wallet users after withdrawals were suspended during the crypto market crash of 2022.

This Chapter 11 proceeding 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 assets and advance the sale.

Currently, Poolin has entered into an Asset Purchase Agreement with Thor CALAP LLC, which has offered $52 million to acquire the relevant mining assets. This includes $15 million for the Pyote site along with related power rights and equipment, and $37 million for the Tarbush site'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 remains subject to higher offers and court approval. (Theenergymag)