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Bitcoin mining pool Poolin files for Chapter 11 bankruptcy
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Bitcoin mining pool Poolin and two of its US affiliates filed for Chapter 11 bankruptcy in a New Jersey court on Wednesday, marking a significant downturn for the Singapore-based operator that once dominated the industry. The filing includes a proposed $52 million sale of two West Texas mining sites as part of a creditor recovery program, with court approval sought for a stalking-horse bid from Thor CALAP LLC. This development highlights the mounting financial pressures facing Bitcoin miners amid rising electricity costs and shifting market dynamics.
Poolin was the world's largest Bitcoin mining pool in 2019 but has since plummeted to 17th place by hashrate, holding just 0.2% market share, according to Hashrate Index. The company's court filing reveals estimated liabilities between $100 million and $500 million, assets of only $1 million to $10 million, and up to 25,000 creditors. The proposed sale includes $37 million for the Tarbush assets, including assumed liabilities, and $15 million for the Pyote site, covering power rights, equipment, and related mining facilities. The sale will be subject to a court-supervised auction with a bid deadline of September 8.
Bitcoin miners are increasingly turning to restructuring and alternative revenue streams as operational costs rise. In February, NFN8 Group filed for Chapter 11 bankruptcy in Texas, while others have pivoted to artificial intelligence. For example, Bitfarms initiated a complete wind-down of Bitcoin mining in November 2025 to focus on AI and high-performance computing data centers. On Monday, Hut 8 announced a $9.8 billion, 15-year lease for an AI data center campus, and IREN disclosed $2.8 billion in cloud services contracts with AI developers. MARA Holdings also plans to acquire a Texas site with up to 2 gigawatts of capacity for AI and digital infrastructure.
Wealth management firm Bernstein noted that partnerships with third-party providers like Bitcoin miners may become essential for AI companies facing computing power limits. The bankruptcy filing and industry shifts underscore the volatility of the cryptocurrency mining sector, which is grappling with energy expenses and post-halving revenue reductions. Poolin's case reflects a broader trend where once-dominant players are forced to downsize or reinvent their business models.
Looking ahead, the industry is likely to see further consolidation and diversification as miners seek stability outside of pure Bitcoin mining. Poolin's court proceedings will be closely watched as a bellwether for other distressed mining firms. The sale of its Texas sites could provide a template for asset monetization, while the pivot to AI infrastructure offers a potential lifeline. However, the success of such transitions remains uncertain given the competitive landscape and capital requirements.
