Poolin, once the world’s largest bitcoin mining pool by hashrate, has filed for bankruptcy. The Singapore-based company, along with its U.S. affiliates Lonestar Dream and Lonestar Taproot, filed for Chapter 11 protection in New Jersey on July 22. Estimated liabilities fall between $100 million and $500 million, according to TheEnergyMag. Debts are around $173 million.
The company’s decline is stark. At its peak around 2019, Poolin controlled roughly 18-20% of global bitcoin mining hashrate, according to Glassnode. Today, its share is effectively zero.
How the fall began
Signs of trouble emerged in late 2022. Users on Poolin’s Telegram channels complained about withdrawal delays. That period saw many crypto firms struggle with liquidity as the market downturn worsened. Co-founder Kevin Pan admitted on WeChat that the company faced liquidity problems but assured users their funds were safe. Within weeks, Poolin Wallet suspended all withdrawals in September 2022. The company issued around $163.7 million in IOU tokens to roughly 11,700 customers. That move bought time but didn’t solve the underlying issues.
Texas expansion stalls
Pan had bet on expanding mining operations in West Texas to rebuild the business. But those plans stalled. Grid connection approvals took longer than expected. The assets that remain are largely two mining sites in West Texas. A $52 million bid from Thor CALAP LLC is currently on the table for those sites. They represent the bulk of what’s left.
Poolin did not respond to CoinDesk’s request for comment. The bankruptcy filing marks the end of a once-dominant player in bitcoin mining. The company’s story shows how quickly fortunes can change in the crypto mining industry, especially when expansion plans and liquidity don’t line up. For customers still holding IOU tokens, the outcome remains uncertain.
