Poolin, the Singapore-based Bitcoin mining company that once commanded roughly 14% of the network's hashrate, filed for Chapter 11 bankruptcy protection on July 22 in New Jersey. The company and its U.S. affiliates, Lonestar Dream Inc. and Lonestar Taproot LLC, are asking a judge to approve a $52 million stalking-horse bid from Thor CALAP LLC for their Texas mining properties. The filing caps a two-year slide that began when Bitcoin's price crashed in mid-2022, triggering margin calls and a cascade of debt.
The $52 million stalking-horse bid
Thor CALAP LLC's bid breaks down to $15 million for the Pyote property, including associated power rights and equipment, and $37 million for the Tarbush site's power rights and equipment. Lonestar Dream stopped mining and hosting at both sites on July 10. The sale is the centerpiece of Poolin's bankruptcy case, which is focused on liquidating Texas assets rather than rebuilding mining operations.
Poolin spent more than three months marketing the assets. The company contacted over 335 potential buyers, signed 28 confidentiality agreements, received seven letters of intent, and fielded three additional expressions of interest. The stalking-horse bid sets a floor; other bidders can still top it at auction.
How a mining giant hit the wall
Poolin moved mining operations from China after Beijing's 2021 ban, betting big on Texas. The company expected up to 600 megawatts of power but only got 100 megawatts. Excess equipment was sold at a loss of $8.8 million from fiscal year 2023 to 2025. Lonestar Dream and Lonestar Taproot together accumulated about $45.9 million in losses.
The real trouble started in June 2022, when Bitcoin fell below $20,000. That triggered margin calls from Tether against collateral pledged through Poolin Wallet. Poolin transferred almost all collateral to Antalpha and borrowed about $213 million against crypto assets valued at just under $356 million. In September 2022, Poolin Wallet suspended withdrawals and issued roughly $163.7 million worth of IOU tokens to customers. About 11,700 wallet users held balances above $100.
Bitcoin kept falling, dropping below $16,800 in November 2022. Poolin ceased operations, and Antalpha liquidated the collateral. Management estimated about $260 million was owed to Antalpha against digital assets valued near $265 million at the time.
What creditors are owed
Poolin listed between 10,001 and 25,000 creditors, with assets estimated between $1 million and $10 million. Prepetition obligations total about $173.1 million, with roughly $163.7 million tied to unsecured IOUs issued to Poolin Wallet customers. That's the bulk of the debt — and those customers have been waiting since September 2022 for their funds.
Poolin now needs court approval for the stalking-horse bid. The case is being heard in New Jersey, and a hearing is expected in the coming weeks. If the sale goes through, the proceeds will go toward repaying creditors — but with $173 million in claims and assets capped at $10 million, recovery for unsecured IOU holders is likely to be minimal.
