Poolin Technology, once one of Bitcoin's largest mining pools, filed for Chapter 11 bankruptcy on July 22 in New Jersey. The company owes roughly $163.7 million in IOUs to about 11,700 wallet users. Two affiliates — Lonestar Taproot LLC and Lonestar Dream Inc. — also filed and are asking the court to approve the sale of Texas mining assets with opening offers totaling $52 million.
A $163.7 million shortfall
The $52 million in offers covers assets held by the affiliates, not cash from Poolin Technology's wallet business. That represents about 31.8% of the IOUs. But there's no reliable recovery estimate for wallet creditors. Unresolved sale prices, liens, estate allocations, bankruptcy expenses, and allowed claims all cloud the picture. Poolin Technology itself reports only about $1.2 million in a New Jersey bank account, an office lease, and an intercompany claim.
From mining giant to IOU issuer
Poolin was a powerhouse in Bitcoin mining. Its hashrate exceeded 25 EH/s in 2021-2022, and its network share peaked near 18% around 2020. The company also ran Poolin Wallet, which offered deposit products with annual returns of roughly 2% to 8.8% before the liquidity crisis. Then came June 2022. Bitcoin fell below $20,000. Pledged collateral lost value, triggering margin calls. Poolin shifted financing to Antalpha Technologies, which lent against digital assets. Antalpha later liquidated roughly $265 million of collateral in November 2022 against about $260 million due. By September 2022, Poolin suspended payouts and issued IOUs to wallet holders with balances above $100. The IOUs were essentially promissory notes — users got claims instead of cash.
Texas assets on the block
The stalking-horse agreements include a $15 million offer for Pyote assets and a $37 million offer for Tarbush-related assets. Bid protections include a 3% breakup fee and expense caps. If a higher bid emerges, the stalking-horse bidders get that fee and expense reimbursement. An auction could draw bids from crypto miners and AI data-center operators, potentially increasing sale prices. The cases are jointly administered under case 26-18325 in the US Bankruptcy Court for the District of New Jersey.
Uncertain recovery for wallet users
For the 11,700 wallet creditors, the path forward is murky. The $52 million from asset sales is a fraction of what's owed, and that money goes to the affiliates first. Poolin Technology's own assets are thin. The court will need to sort out how the estates interact. An auction could improve the sale price, but no one is offering a recovery estimate yet.
The next concrete step: the court will consider approving the stalking-horse bids and setting auction procedures. Whether that auction draws enough interest to meaningfully close the gap remains the open question.
