“It’s a tough blow but necessary,” said an industry insider commenting on Poolin’s recent Chapter 11 bankruptcy filing. Once hailed as the world’s largest Bitcoin mining pool, Poolin’s move to seek bankruptcy protection in the US highlights ongoing turbulence within the crypto mining sector. Filed in the New Jersey District Court, the case involves Poolin and two of its subsidiaries grappling with mounting debts stemming largely from fallout after the 2022 liquidity crunch.
The bankruptcy documents reveal Poolin owes around $173.1 million. A striking $163.7 million of that total is tied to IOUs given to users of Poolin Wallet following the suspension of withdrawals in 2022. Customers had their funds locked, with the company issuing these IOUs as acknowledgments of the owed amounts. To address some creditor claims, Poolin plans to auction off two mining sites in western Texas, with court papers listing an initial bid of $52 million. How much creditors will recoup remains uncertain and hinges on the final court-approved restructuring plan and sale proceeds.
Founded in 2017, Poolin saw rapid expansion as Bitcoin mining surged, eventually leading the global mining pool rankings by 2019. It controlled a sizable chunk of the total Bitcoin network's hash power, making it a key player. However, the crypto market's sharp downturn in 2022 hit Poolin hard. Mining revenues plummeted while liquidity dried up, forcing the pool to halt user withdrawals and sowing unrest among investors.
Experts suggest the Chapter 11 process could allow Poolin to reorganize without ceasing operations entirely, but the outcome remains fragile. This episode shows how vulnerable even major mining companies are to market swings and the critical importance of financial resilience in this volatile sector.
