Poolin, once the world’s largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy protection in the US due to financial difficulties. The filing, submitted by the company and two of its subsidiaries in the New Jersey District Court, reveals that long-standing financial problems, following the 2022 liquidity crisis, have reached a new stage.
According to documents submitted to the court, Poolin’s total debt is approximately $173.1 million. Of this amount, $163.7 million consists of Invoices for Debt (IOUs) issued to Poolin Wallet users after withdrawals were suspended in 2022. At that time, these users were unable to access their wallet assets, and the company issued IOU documents representing their receivables.
As part of its bankruptcy proceedings, Poolin plans to sell two Bitcoin mining facilities located in western Texas. According to court documents, the initial bid for these facilities is a total of $52 million. Repayments to creditors will depend on the proceeds from the sale and the court’s final approval.
Founded in 2017, Poolin experienced significant growth, particularly during the rapid expansion of Bitcoin mining, and reached the position of the world’s largest Bitcoin mining pool in 2019. The company became one of the most influential players in the sector, controlling a significant portion of the total transaction verification power on the global Bitcoin network.
However, the sharp decline in the cryptocurrency market in 2022, the decrease in mining revenue, and liquidity problems negatively affected Poolin as well. In the same year, the company suspended user withdrawals, a decision that caused great concern among investors.
Industry experts say the Chapter 11 process will give Poolin the opportunity to restructure without completely ceasing operations. However, how much creditors will receive will depend on the proceeds from the sale of the mining facilities and the restructuring plan approved by the court.
Analysts say the development highlights once again the importance of financial sustainability in the cryptocurrency mining sector, and that sharp fluctuations in market conditions can put even large companies under significant financial pressure.
*This is not investment advice.