Poolin, Former Bitcoin Mining King, Files for Bankruptcy: $173 Million in Debt
Poolin, once the world’s largest Bitcoin mining pool with nearly 20% of the global hashrate in 2019, has filed for bankruptcy. The Singapore-based company, burdened by debts estimated at $173 million, initiated a Chapter 11 proceeding in the United States on July 22, 2026, marking the tragic end of a giant that once dominated the mining industry.
An Empire Built on Hashrate
In 2019, Poolin reigned unchallenged over the Bitcoin mining ecosystem. With a hashrate share oscillating between 18% and 20%, the Singapore-based pool was the essential entry point for thousands of miners worldwide. Glassnode data at the time confirmed its dominance: more Bitcoin was mined via Poolin than through any other pool on Earth.
This position of strength rested on solid technical infrastructure and competitive fees that attracted both institutional miners and individuals. But as is often the case in crypto, peaks can precede the most brutal falls.
The 2022 Liquidity Crisis: The Beginning of the End
The first major blow came in 2022, during the “crypto winter” that saw the collapse of FTX, Terra/Luna, and many other major players. Poolin was not spared. In August 2022, the pool suspended withdrawals from its Poolin Wallet service, sparking panic among its users.
A few weeks later, in September 2022, Poolin Wallet completely halted all withdrawals, freezing approximately $163.7 million belonging to nearly 11,700 clients. In an attempt to salvage the situation, the company issued IOU tokens (promises of repayment) — a decision that only postponed the inevitable.
Since that crisis, Poolin’s hashrate share has fallen to zero. The pool now exists in practice only as an empty shell crushed under the weight of debt.
Chapter 11: $173 Million to Repay
On July 22, 2026, Poolin officially filed for bankruptcy protection (Chapter 11) in the District of New Jersey, along with its U.S. subsidiaries Lonestar Dream and Lonestar Taproot. Court documents reveal debts estimated between $100 million and $500 million, with an amount owed of approximately $173 million to date.
As part of the proceedings, Poolin seeks to liquidate its remaining assets to repay creditors. The only significant offer on the table comes from Thor CALAP LLC, which has proposed $52 million for Poolin’s mining sites located in West Texas. This sum, while substantial, only covers a fraction of the $173 million owed.
Lessons from a Collapse
Poolin’s bankruptcy illustrates several fundamental dynamics of the Bitcoin mining sector:
- Hashrate concentration is a systemic risk — in 2019, a single pool controlled nearly one-fifth of the global computing power. Had Poolin suddenly disappeared at its peak, the consequences for network security would have been immediate.
- The mining business model is brutal — pools operate on very thin margins, and the slightest shock (a drop in BTC price, a rise in energy costs) can be fatal. Poolin accumulated colossal debts during the fat years without building sufficient reserves.
- IOUs are not a solution — the $163.7 million in client funds frozen as IOU tokens in 2022 were never repaid. This serves as a painful reminder for miners who trusted the pool.
- Texas remains the new El Dorado — Poolin’s Texas mining sites are the only assets attracting a serious offer ($52M). Texas has become the global hub for Bitcoin mining since the Chinese ban of 2021.
Impact on the Bitcoin Market
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