Singapore-based Bitcoin mining firm Poolin has filed for Chapter 11 bankruptcy protection in New Jersey, listing approximately $173 million in liabilities. The company, alongside its U.S. affiliates Lonestar Dream Inc. and Lonestar Taproot LLC, seeks court approval for a $52 million sale of its Texas mining properties. Around $163.7 million of the debt comes from unsecured IOUs issued to Poolin Wallet customers after withdrawals were frozen in September 2022. The filing comes nearly four years after the freeze, turning a mining business failure into a long-running creditor dispute. The bankruptcy case focuses on selling Texas assets rather than rebuilding operations.
Poolin filed for Chapter 11 bankruptcy protection on July 22 in the U.S. Bankruptcy Court for the District of New Jersey. The company listed between 10,001 and 25,000 creditors, with petition assets estimated between $1 million and $10 million.
Chief Restructuring Officer Michael DuFrayne’s declaration placed prepetition obligations at about $173.1 million. Roughly $163.7 million is tied to unsecured IOUs issued to Poolin Wallet customers, as stated in court records.
Poolin has entered asset purchase agreements with Thor CALAP LLC for a combined $52 million stalking-horse bid. The offer includes $15 million for the Pyote property and associated power rights and equipment, plus $37 million for the Tarbush power rights and equipment.
The company spent more than three months marketing the assets, contacting over 335 potential buyers. The process resulted in 28 confidentiality agreements, seven letters of intent, and three additional expressions of interest.
Poolin’s Texas expansion struggled after mining operations moved from China following Beijing’s 2021 mining ban. The company expected up to 600 megawatts of power but only 100 megawatts were made available, leaving equipment overcapacity.
Some equipment was sold, resulting in an $8.8 million loss from fiscal year 2023 to 2025. Lonestar Dream and Lonestar Taproot accumulated about $45.9 million in losses.
In June 2022, when Bitcoin fell below $20,000, it triggered margin calls from Tether against collateral pledged through Poolin Wallet. The firm transferred almost all collateral to Antalpha and borrowed about $213 million against crypto assets valued at just under $356 million.
In September 2022, Poolin Wallet suspended withdrawals and issued around $163.7 million in IOU tokens to customers. About 11,700 wallet users held balances above $100, according to the filing.
Bitcoin later fell below $16,800 in November 2022, after which Poolin ceased operations, and Antalpha liquidated the collateral. Management estimated that about $260 million was owed to Antalpha against digital assets valued near $265 million at the time.
Poolin once reached roughly 14% of the Bitcoin network’s mining share in 2019. The company’s remaining value now depends on the Texas asset sale and the outcome of the bankruptcy process.
