The Fall of a Mining Titan: From Hash Rate Dominance to Bankruptcy Court
A once-dominant force in Bitcoin mining has reached its end. Court documents reveal that Poolin and its affiliated entities filed for Chapter 11 bankruptcy protection on July 22nd in New Jersey, marking one of the most significant institutional collapses in the recent history of crypto mining.
A Staggering Financial Abyss
The numbers presented to the court are dire. Poolin's estimated liabilities range between $100 million and $500 million, with a confirmed figure of approximately $173.1 million. In stark contrast, the company's assets are valued at less than $10 million, indicating a profound insolvency.
The scale of affected parties is vast. The filing estimates the number of creditors to be between 10,000 and 25,000. The single largest debt, about $163.7 million, is owed to roughly 11,700 users of its wallet service, whose funds have been locked since September 2022.
Root of the Crisis: A "Liquidity" Storm Years in the Making
The current disaster has its origins in the aftermath of the 2021 bull market. In September 2022, amid a cascading crypto market crash, Poolin publicly acknowledged "liquidity issues" and subsequently suspended user withdrawals.
It later emerged that the platform had allegedly misappropriated user-deposited assets for lending or investments, which were liquidated during the market downturn. Instead of returning users' actual Bitcoin, Poolin issued "IOU" debt tokens. Three years later, this massive obligation remains unresolved, forming the core weight that sank the company.
Strategic Missteps and an Overseas Debacle
Founded in Beijing in 2017 by former Bitmain executives, Poolin rose meteorically. By 2019, it controlled an estimated 18%-20% of the global Bitcoin hash rate, ranking among the world's largest mining pools.
However, regulatory shifts in China in 2021 forced an overseas pivot. The company bet heavily on Texas, USA, but the relocation proved disastrous. While anticipating 600 megawatts of power capacity, it ultimately secured only 100 megawatts, severely hampering operations.
The power shortfall left a large fleet of miners idle, forcing fire sales of equipment. From 2023 to 2025, these disposals alone are projected to cause an $8.8 million loss. The entire Texas venture accumulated nearly $45.9 million in losses before being permanently shuttered on July 10th of this year.
The Aftermath and Faint Hope for Recovery
Poolin's sole remaining asset for repaying creditors is the auction of its two West Texas mining facilities. Thor CALAP LLC has placed a $52 million "stalking horse bid" to set the auction's floor price.
Yet, this amount pales in comparison to the total debt exceeding $173 million. Creditors have been warned to expect only a partial recovery, with significant losses likely permanent. This case serves as another stark warning about the profound risks embedded within the volatile cryptocurrency mining industry.