Bitcoin mining pool Poolin files for Chapter 11 bankruptcyBitcoin miner Poolin filed for Chapter 11 bankruptcy and initiated a $52 million sale of its two West Texas mining sites as part of its future creditor recovery program.

Singapore-based Bitcoin mining pool Poolin and two of its US affiliates filed for Chapter 11 bankruptcy protection in a New Jersey court. According to the court filings, Poolin estimates its liabilities to be between $100 million and $500 million, while its assets are valued between $1 million and $10 million. The company has between 10,001 and 25,000 creditors. As part of the bankruptcy proceedings, Poolin and its affiliates are seeking court approval to sell two mining sites in West Texas to Thor CALAP LLC under a proposed $52 million stalking-horse bid. This bid comprises $37 million for the Tarbush site, including assumed liabilities, and $15 million for the Pyote site, which includes power rights, equipment, and other related assets.

The proposed sale will be subject to a court-supervised auction, with a deadline for bids set for September 8, following proposed bidding procedures. Poolin, once the largest Bitcoin mining pool globally in 2019, currently ranks as the 17th largest mining pool by hashrate, holding a 0.2% market share according to Hashrate Index. This decline and financial distress reflect broader challenges in the Bitcoin mining industry, driven by rising electricity costs and other operational pressures.

The article notes that Bitcoin mining companies increasingly face financial difficulties, leading some to restructure their operations or seek alternative revenue streams. For example, NFN8 Group filed for Chapter 11 earlier this year, and Bitfarms has announced winding down its Bitcoin mining to focus on AI and high-performance computing data centers. Recent AI-related deals by mining companies such as Hut 8 and IREN also indicate a trend of diversification, with significant new contracts and leases planned for AI infrastructure. According to wealth management firm Bernstein, partnerships with Bitcoin miners will be important for AI companies aiming to expand computing power capabilities.

Overall, the Poolin bankruptcy and asset sale underscore the financial and operational pressures facing Bitcoin miners amid rising energy costs and market changes. The restructuring efforts and pivots toward AI infrastructure among some mining companies further highlight shifts in the industry landscape as mining operators seek sustainable future models.