Singapore-based Bitcoin miner Poolin has filed for Chapter 11 bankruptcy protection in New Jersey together with its US affiliates, as it moves to sell its Texas mining properties through a court-supervised process. The case is focused on liquidating those assets rather than restarting operations, with a proposed $52 million stalking-horse deal already on the table.
Bankruptcy filing and debt load
Poolin, Lonestar Dream Inc., and Lonestar Taproot LLC filed on July 22. Court papers list between 10,001 and 25,000 creditors and about $173.1 million in prepetition obligations. Most of that burden stems from unsecured IOUs issued to users of Poolin Wallet after the company froze withdrawals in 2022.
The filings indicate that roughly $163.7 million of the debt is tied to those wallet-related IOUs. That places the bankruptcy case within a much broader fallout from Poolin’s earlier financial stress, which extended beyond its mining business.
Texas assets at the center of the case
The immediate goal in Chapter 11 is the sale of Poolin’s Texas mining properties. Asset purchase agreements have been signed with Thor CALAP LLC, which is serving as the stalking-horse bidder in a proposed $52 million transaction. Under that structure, the Pyote site is valued at $15 million and the Tarbush site at $37 million.
Lonestar Dream stopped mining and hosting operations at both Pyote and Tarbush on July 10. According to the case materials, the debtors are not seeking to rebuild those operations through bankruptcy. Instead, they are pursuing a sale process intended to maximize value through competitive bidding and court approval.
Marketing process and operating losses
Before reaching the proposed deal, the company said it marketed the Texas assets to hundreds of potential buyers. That effort reportedly drew several letters of intent and other expressions of interest, which led to the current stalking-horse agreement.
Poolin’s Texas expansion had been pressured by limited power availability, a problem that contributed to losses. Some mining equipment was sold off, and the source article says those sales produced an $8.8 million loss between 2023 and 2025. Across Lonestar Dream and Lonestar Taproot, total losses were said to be about $45.9 million.
Wallet fallout from 2022
Poolin’s financial problems were not confined to the Texas business. In 2022, margin calls tied to collateral pledged through Poolin Wallet resulted in suspended withdrawals and the issuance of IOUs to customers. The source article says about $260 million owed to Antalpha was linked to collateral then valued at roughly $265 million.
That history now looms over the Chapter 11 proceedings because the wallet liabilities make up the vast majority of claims listed in the filing. The eventual recovery available to stakeholders appears to depend heavily on the outcome of the Texas asset sale and the broader liquidation process.
The bankruptcy case now moves toward a court-supervised auction and a liquidation plan, both of which remain subject to competing bids and judicial approval. For Poolin, the restructuring effort appears aimed less at preserving an operating mining business than at converting its remaining Texas infrastructure into cash for creditors.
Source: cryptopotato.com