Poolin Files for Bankruptcy as Bear Market Pressures Hit Former Mining Giant

Poolin, once the world’s largest Bitcoin mining pool, has filed for Chapter 11 bankruptcy in New Jersey after years of mounting pressure from the crypto bear market and sector downturns. The company and its U.S. affiliates listed about $173 million in debt, with much of the liability tied to customer IOUs and frozen withdrawals dating back to 2022.

The filing underscores how severely the mining industry has been squeezed by falling profitability, higher operating costs, and the lasting effects of China’s mining ban. Poolin, which was once a dominant player in global Bitcoin mining, has already ceased mining operations and is now pursuing an orderly wind-down.

As part of the bankruptcy process, Poolin and its affiliates are seeking approval to sell two West Texas mining sites, with a proposed $52 million stalking-horse bid on the table. That figure is far below the company’s stated obligations, raising questions about how much value creditors and affected users may recover.

The bankruptcy is being viewed as another sign of post-boom cleanup in crypto mining, where older operators are struggling to survive in a more competitive and less forgiving market. Poolin’s collapse shows how quickly a once-leading mining brand can unravel when market conditions turn against it.

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