Poolin files for Chapter 11 with $173.1 million in debt
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The once-dominant Bitcoin mining pool has entered bankruptcy proceedings in New Jersey, leaving 11,700 wallet holders with frozen funds and cash reserves of just $1.2 million.
Poolin filed for Chapter 11 protection on July 22, 2026, listing total debt of $173.1 million against cash on hand of only $1.2 million. Of that debt, $163.7 million is owed to 11,700 wallet users whose withdrawals have been frozen since 2022. Mining operations at the company stopped entirely on July 10, 2026, according to a filing detailed on wublockchain.xyz.
The bankruptcy estate's main assets are two Texas mining sites, Pyote and Tarbush, which are being auctioned with a floor bid of $52 million. That figure covers roughly 30% of the total debt before fees are accounted for, meaning actual recovery for creditors is expected to be lower still. The proceeding is being characterized as a liquidation rather than a restructuring aimed at continued operations.
The collapse traces back to a yield program in which Poolin paid returns of 2% to 8.8% by using customer crypto as collateral. When bitcoin broke below $20,000 in June 2022, the resulting margin calls triggered the freeze on user withdrawals that has now lasted more than three years. Poolin's standing in the mining industry deteriorated over that period, with its share of global hashrate falling from the top position to 0.2%.
The bankruptcy surfaces amid a broader pullback in bitcoin-linked markets. Spot bitcoin ETFs recorded $225 million in net outflows, ending a seven-day inflow streak, per Cointelegraph and Decrypt. ETF flow data tracked by Farside has shown similar net outflows in subsequent sessions, including figures around $240 million and $203 million tied to individual funds, alongside declines in the underlying bitcoin price.
What remains unresolved is how much of the $163.7 million owed to the 11,700 affected users will actually be recovered once the Texas site auctions close and legal fees are deducted from the estate. The timeline for creditor distributions, and whether the $52 million floor bid attracts higher offers, has not been disclosed.