Poolin's Crypto Asset Sale
Crypto Miner Poolin Files Chapter 11, Plans $52 Million Sale of Texas Assets
Anonymous
Key Points
1
Poolin's U.S. affiliates Lonestar Dream Inc. and Lonestar Taproot LLC filed for Chapter 11 alongside Poolin.
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The stalking-horse bid totals $52 million for the Texas assets, with Pyote priced at $15 million (including power rights and equipment) and Tarbush at $37 million (power rights and equipment); Tarbush's surface-use agreement is not included in the sale.
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Lonestar Dream stopped mining and hosting operations at the Pyote and Tarbush sites on July 10, leaving only a small staff to secure properties and assist with the sale.
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A three-month marketing campaign connected with more than 335 potential buyers and investors, emphasizing opportunities in artificial intelligence and high-performance computing.
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Prepetition obligations are about $173.1 million, with roughly $163.7 million consisting of unsecured IOUs to Poolin Wallet users following the 2022 withdrawal suspension.
Bitcoin mining pool Poolin has filed for Chapter 11 bankruptcy in New Jersey, kicking off a court-supervised wind-down of its U.S. operations, according to CoinTelegraph. The Singapore-based company plans to sell its two West Texas mining sites for a combined $52 million as part of its effort to repay creditors.
The filing comes with a staggering debt load. Poolin estimates liabilities between $100 million and $500 million, with roughly $163.7 million owed to users of its Poolin Wallet after the company froze withdrawals in 2022, Bitcoin Foundation reported.
Two Texas Mining Sites Go Up for Sale
Poolin and its U.S. affiliates — Lonestar Dream Inc. and Lonestar Taproot LLC — filed the Chapter 11 petitions together. The debtors have already signed stalking-horse deals with Thor CALAP LLC, setting a price floor for competing bids. The Pyote site is valued at $15 million. The larger Tarbush site is priced at $37 million, per crypto.news.
Both deals include power rights and equipment. Tarbush's surface-use agreement is not part of the sale. The assets will go through a Section 363 court auction, which lets other buyers step in with higher offers. Lonestar Dream stopped all mining and hosting at both sites on July 10, leaving only a skeleton crew to secure the properties.
$163.7 Million Owed to Wallet Users Since 2022 Freeze
Most of Poolin's debt traces back to a crisis in 2022. The company suspended withdrawals from its Poolin Wallet that year, locking out customers. Those frozen funds now make up roughly $163.7 million of the $173.1 million in total prepetition obligations, Bitcoin Foundation reported.
Poolin estimates between 10,001 and 25,000 creditors in total. Its assets, by contrast, sit between just $1 million and $10 million. That gap — hundreds of millions in debt against single-digit millions in assets — is why the company is selling off its physical infrastructure rather than trying to reorganize, according to TradingView.
335 Buyers Contacted, AI Demand Drives Interest
Before filing, Poolin ran a three-month marketing push to find buyers. The campaign reached more than 335 potential buyers and investors. Poolin pitched the Texas sites not just as bitcoin mines, but as facilities suited for artificial intelligence and high-performance computing workloads, Coinfomania reported.
That pitch reflects a broader shift in the mining industry. Many miners who built out capacity during the 2021 crypto boom have since struggled with falling prices and rising costs. The AI data center angle could attract a wider pool of bidders and push the final sale price above the $52 million floor.
Poolin's Fall Reflects Wider Crypto Mining Turmoil
Poolin was once one of the largest bitcoin mining pools in the world. Its collapse is part of a broader shakeout in the crypto mining sector. Miners that expanded aggressively during the 2020–2021 bull market were hit hard when bitcoin prices dropped and energy costs climbed, according to TradingView.
Wallet users and other creditors now wait for the bankruptcy court to sort out recoveries. The Section 363 auction process is designed to move fast and maximize value. Whether the $52 million stalking-horse price holds — or gets topped — will shape how much creditors ultimately get back, CoinTelegraph noted.
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