Poolin Technology, once one of the biggest Bitcoin mining pool operators, filed for Chapter 11 bankruptcy in New Jersey this week. The company and its U.S. affiliates listed $173 million in debt. A $52 million asset sale is already moving forward as part of the liquidation.
Chapter 11 filing details
The bankruptcy petition was filed in the U.S. Bankruptcy Court for the District of New Jersey. Poolin Technology and its American subsidiaries are seeking to restructure under Chapter 11, which allows a company to keep operating while it works out a repayment plan. But given the size of the debt and the asset sale already in motion, this looks more like a straight liquidation.
The $173 million figure covers secured and unsecured claims. The filing doesn't name the largest creditors, but the company's mining pool business had been shrinking for months before the petition.
The $52 million asset sale
As part of the bankruptcy process, Poolin is selling off assets worth $52 million. The sale is already moving forward, though court approval is still required. It's not clear from the filing exactly what's being sold — mining rigs, data center equipment, or intellectual property — but the proceeds will go toward paying down debt.
The sale is a key piece of the case. If it closes, it would cover about 30% of the total debt. That leaves a lot of creditors waiting for whatever's left.
Poolin's fall from dominance
Poolin was once a major force in Bitcoin mining. At its peak, it controlled a significant share of the network's hashrate. But the company struggled as mining difficulty rose and margins tightened. The bankruptcy filing caps a steep decline for a firm that was a household name in crypto mining circles just a few years ago.
The company didn't give a reason for the collapse in the filing. But the broader mining industry has been under pressure, and Poolin wasn't immune.
The court will need to approve the asset sale and set a schedule for creditor claims. A first hearing is expected in the coming weeks. For now, the company's mining operations are effectively winding down. Creditors will have to wait and see how much of the $173 million they'll recover — if anything.
