Poolin, once the world's largest bitcoin mining pool, filed for Chapter 11 bankruptcy protection on July 22 with two U.S. affiliates as it moves to liquidate its West Texas mining assets and wind down operations. The jointly administered filing in the U.S. Bankruptcy Court for the District of New Jersey covers Poolin, Lonestar Dream Inc. and Lonestar Taproot LLC. Court papers show a balance sheet heavily weighed down by customer claims tied to Poolin Wallet. The debtors listed about $173.1 million of prepetition obligations, including roughly $163.7 million of unsecured IOUs issued after withdrawals were suspended in September 2022. The petition lists 10,001 to 25,000 creditors, assets of $1 million to $10 million and liabilities of $100 million to $500 million. The case is structured as a liquidating Chapter 11 centered on a sale of Texas mining properties rather than a turnaround. Thor CALAP LLC has been selected as the stalking-horse bidder with a combined $52 million offer, split between $15 million for the Pyote property and associated power rights and equipment and $37 million for Tarbush power rights and equipment. Poolin said a more than three-month marketing process contacted over 335 potential buyers, including cryptocurrency miners and artificial intelligence and high-performance computing operators, producing 28 confidentiality agreements, seven letters of intent and three additional expressions of interest. Poolin’s Texas expansion faltered after the company moved mining operations from China following Beijing’s 2021 mining ban. It expected up to 600 megawatts of power but received 100 megawatts, leaving it with excess equipment that was later sold at an $8.8 million loss from fiscal 2023 to 2025. Lonestar Dream and Lonestar Taproot ultimately accumulated about $45.9 million in losses. Poolin’s wallet business deepened the crisis during the 2022 crypto downturn. When Bitcoin fell below $20,000 in June 2022, margin calls from Tether led Poolin to transfer nearly all pledged collateral to Antalpha and borrow about $213 million against crypto assets valued at just under $356 million. After withdrawals were suspended in September 2022, around $163.7 million of IOU tokens were issued to customers, with about 11,700 wallet users holding balances above $100. Bitcoin later fell below $16,800 in November 2022, Poolin ceased operations, and Antalpha liquidated the collateral. Management estimated about $260 million was then owed to Antalpha against digital assets valued near $265 million. Creditor recoveries now hinge on the auction outcome, sale costs, administrative claims and court approval of a liquidation plan.