Poolin Technology, once one of the world's largest Bitcoin mining pool operators, has filed for Chapter 11 bankruptcy and plans to sell its remaining US mining infrastructure rather than restart operations.
The collapse reflects company-specific failures dating to the 2022 crypto downturn. It also raises a broader question for dedicated Bitcoin miners as falling profitability pushes larger operators to reposition their power assets as AI and high-performance computing infrastructure.
Wallet crisis ends operations
Poolin filed in the US Bankruptcy Court for the District of New Jersey on 22 Jul alongside its affiliates Lonestar Dream and Lonestar Taproot. Their mining and hosting operations at two West Texas sites closed on 10 Jul.
Poolin operated a Bitcoin mining pool, a service that grouped many independent miners so they could combine, or pool, the computing power of their specialized machines and improve their collective chance of earning Bitcoin rewards. When Poolin's pool successfully mined a block, the company distributed the reward among participants according to how much computing power each had contributed and kept a fee for running the service. A regular miner, by contrast, owns or operates the machines and may either mine alone or connect them to a pool such as Poolin for smaller, more frequent payouts.
Court materials put the companies' pre-bankruptcy obligations at about $173.1mn. Approximately $163.7mn consists of unsecured claims held by wallet users after Poolin suspended withdrawals in September 2022.
Poolin's issues arose from China's 2021 mining ban, the company's relocation to Texas and the collapse in crypto prices. Its US subsidiaries later recorded approximately $45.9mn in cumulative losses.
The company said it has secured separate stalking-horse offers – opening bids that set minimum prices in a bankruptcy sale – from Thor CALAP, a special-purpose vehicle (SPV) created to acquire the distressed assets. The offers value its Pyote assets at $15mn and its Tarbush infrastructure at $37mn. Pyote and Tarbush are Poolin's two Bitcoin mining facilities in Texas. The combined $52mn bid sets the floor for a court-supervised sale and remains open to competing bids.
AI rewrites mining economics
Poolin's potential buyer mix shows that investors increasingly value mining sites for their access to electricity, substations and cooling systems rather than only their ability to produce Bitcoin.
Bitcoin miners are increasingly repurposing power, land and cooling infrastructure for AI and high-performance computing as mining profitability weakens. Hashprice – expected daily revenue from one petahash of computing power – has fallen to about $29 from $36–$38 in the first quarter, according to CoinShares, putting many operators near or below breakeven.
Bitcoin (BTC) traded at about $63,988 as of 16:01UTC on 24 Jul, down 1.6% over the previous 24 hours. The cryptocurrency has lost 27% since the start of the year, reflecting continued pressure from weaker institutional demand, a higher interest-rate environment and softer mining economics.
Larger miners are responding by signing long-term data centre contracts or converting sites for AI workloads, which can offer steadier returns. Miners pivoting to AI have already secured about $133bn in contracted revenue from supplying power and data-centre capacity to AI companies.
The transition requires substantially more capital than Bitcoin mining and is not available to every operator. AI facilities need continuous power, advanced networking and more expensive cooling and computing equipment.
Poolin's bankruptcy does not stem solely from current mining conditions. Its wallet liabilities and unsuccessful US expansion were central factors. The sale nevertheless shows the widening divide between miners able to convert power capacity into contracted AI revenue and operators left dependent on volatile Bitcoin economics.
Analysts at Wall Street research firm Bernstein said the sector still offers upside, although miners' ability to execute their AI transitions will determine which companies emerge as winners. "We are overweight on the sector, although, we are watching closely for which management teams break out on execution and durable client relationships," Bernstein said.
