Former Largest Bitcoin Mining Pool Poolin Files for Bankruptcy
The former largest Bitcoin mining pool in the world, Poolin, has submitted a voluntary Chapter 11 bankruptcy application to the bankruptcy court in New Jersey, USA, planning to sell its mining assets in Texas for $52 million and cease operations.
It has liabilities of approximately $173 million, of which $163.7 million is unsecured IOUs issued to about 11,700 wallet users after suspending withdrawals in 2022. Two Texas mining sites ceased operations on July 10.
The bankruptcy is event-driven, with the potential for the mining site's electricity and equipment to appreciate due to AI demand. Funds will flow to bidders and creditors, benefiting AI infrastructure buyers, while wallet users holding IOUs will be under pressure.
Source: Public Information
ABAB AI Insight
Poolin was once the largest Bitcoin mining pool globally, but during the crypto winter of 2022, it suspended withdrawals due to a liquidity crisis and issued IOUs, leading to entanglements with creditors like Antalpha, ultimately resulting in the bankruptcy of its U.S. affiliate.
In terms of capital strategy, the company is packaging its Texas Pyote and Tarbush mining sites for sale at a base price of $52 million, shifting resources from mining to asset liquidation, motivated by maximizing recovery through Chapter 11 to repay unsecured debts.
Similar cases can be seen with mining companies like Compute North and Core Scientific, which sold power assets during the bankruptcy wave of 2022-2023, currently in a phase of industrial chain restructuring as Bitcoin mining transitions to AI computing power.
This fundamentally represents an industrial chain restructuring, driven by declining mining returns combined with debt pressure, forcing electricity-intensive assets to be repriced and redirected towards higher-value AI applications.
ABAB News · Cognitive Law
The mining pool winter ultimately ends in bankruptcy.
Electricity assets are repriced in the AI era.
IOUs are deferred bills for suspended withdrawals.