Poolin, once the world’s largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection in the United States, marking another sign of the financial strain facing cryptocurrency mining companies as operating costs continue to climb.
The Singapore-based company, along with two of its US affiliates, submitted bankruptcy filings in a New Jersey court on Wednesday. Court documents estimate that Poolin owes between $100 million and $500 million to creditors while listing assets valued at only $1 million to $10 million. The filings indicate the company has between 10,001 and 25,000 creditors.
As part of its restructuring efforts, Poolin is seeking court approval to sell two Bitcoin mining facilities in West Texas for approximately $52 million. The proposed buyer, Thor CALAP LLC, submitted a stalking-horse bid that values the Tarbush mining site at $37 million, including assumed liabilities, while the Pyote facility is valued at $15 million, covering its power rights, mining equipment and related assets.
The assets will not be sold immediately, however. Under the proposed bankruptcy process, competing buyers will have until Sept. 8 to submit higher offers before the court oversees a final auction.
Poolin’s bankruptcy reflects a dramatic decline from its dominant position just a few years ago. The company was the world’s largest Bitcoin mining pool in 2019, but today accounts for only about 0.2% of the global Bitcoin network hashrate, ranking 17th among mining pools.
The filing also highlights broader challenges confronting the Bitcoin mining industry. Following successive Bitcoin halvings and rising electricity prices, many mining firms have struggled to maintain profitability. Some have entered bankruptcy proceedings, while others have chosen to reduce operations or sell assets to improve liquidity.
At the same time, a growing number of miners are shifting their focus beyond cryptocurrency. Instead of relying solely on Bitcoin mining revenue, companies are increasingly investing in artificial intelligence infrastructure and high-performance computing (HPC), hoping to capitalize on surging demand for AI data centers.
Recent announcements illustrate the trend. Hut 8 secured a 15-year, $9.8 billion lease agreement for an AI-focused data center campus, while IREN revealed $2.8 billion worth of cloud computing contracts with AI developers. Earlier this month, MARA Holdings also unveiled plans to acquire a Texas site capable of supporting up to 2 gigawatts of power as it expands its AI and digital infrastructure business.
Industry analysts believe these partnerships could become increasingly important as AI developers search for large-scale computing capacity. For struggling Bitcoin miners, existing power infrastructure may prove to be one of their most valuable assets, even if cryptocurrency mining itself becomes a smaller part of their long-term business strategy.
