Odaily Planet Daily reports that Bitcoin mining pool Poolin has filed for Chapter 11 bankruptcy protection in a U.S. court and plans to cease operations by selling its Bitcoin mining assets in Texas, USA. According to court filings, Poolin and its two U.S. affiliated companies, Lonestar Dream Inc. and Lonestar Taproot LLC, submitted a voluntary bankruptcy petition to the U.S. Bankruptcy Court for the District of New Jersey on July 22. Poolin currently estimates it has between 10,000 and 25,000 creditors, assets ranging from $1 million to $10 million, and liabilities between $100 million and $500 million.
Poolin’s Chief Restructuring Officer, Michael DuFrayne, stated that the company’s total debt prior to bankruptcy was approximately $173.1 million, of which about $163.7 million consisted of unsecured IOUs issued to Poolin Wallet users following the suspension of withdrawals during the 2022 crypto market crash.
This Chapter 11 proceeding is not intended to reorganize the business, but rather to facilitate the sale of assets under court supervision. Poolin’s mining facilities in Pyote and Tarbush, Texas, ceased mining and custody operations on July 10, retaining only a minimal number of employees to maintain assets and advance the sale process.
Currently, Poolin has signed an asset purchase agreement with Thor CALAP LLC, which has offered $52 million to acquire the relevant mining assets, including: $15 million for the Pyote mine and associated power rights and equipment; and $37 million for the Tarbush mine’s power rights and equipment. This offer will serve as the “stalking horse bid” in the bankruptcy auction, setting a minimum price for subsequent bids, and the transaction remains subject to higher offers and court approval. (TheEnergyMag)