Poolin, once one of the world’s largest Bitcoin mining pools, has filed for Chapter 11 bankruptcy protection alongside two US affiliates as it moves to sell its West Texas mining assets. The Singapore-based company and its affiliates filed the petitions, listing about $173.1 million in pre-bankruptcy obligations.
The bankruptcy is intended to support a court-supervised sale rather than a return to normal operations. Poolin has received a combined $52 million offer from Thor CALAP LLC for its Pyote and Tarbush properties, which will serve as the starting bid in an auction.
The sites stopped mining operations on July 10, and the company said the sale process attracted interest from potential buyers in AI and high-performance computing, private equity and crypto mining. The assets could therefore find a second life as AI infrastructure, something that is already playing out in Texas as companies such as Hut 8 reposition former Bitcoin mining sites for AI data centers.
JUST IN: One of the world’s largest Bitcoin mining pools, Poolin, files for Chapter 11 bankruptcy. pic.twitter.com/kxmpyQ63vB
— Crypto India (@CryptooIndia) July 24, 2026
Poolin’s Texas sites could be more valuable for AI than Bitcoin mining
Poolin’s bankruptcy presents the question of whether some Texas mining sites are now worth more for their power infrastructure than for mining Bitcoin. The company’s own filings show that its Texas operations recorded about $45.9 million in cumulative losses, while earlier plans were also hurt by limited power availability and losses from selling excess mining equipment.
At the same time, demand for AI data centers has made access to large amounts of electricity increasingly valuable. Recent deals involving Bitcoin mining companies, including Hut 8’s multibillion-dollar AI data center agreements, show why investors are increasingly viewing mining sites as valuable AI infrastructure rather than failed mining operations. At the same time, Hut 8 is strengthening its finances through a major refinancing deal that lowers its borrowing costs and unlocks a significant portion of its Bitcoin holdings.
What happens to Poolin Wallet customers after the bankruptcy?
Poolin Wallet customers are among the biggest creditors in the bankruptcy case, with about $163.7 million in unsecured IOUs issued after the company froze withdrawals in September 2022. Around 11,700 customers held balances above $100 when the IOUs were issued. Some affected users have since filed legal claims against Poolin and its affiliates in the US and Singapore, adding another layer to the court proceedings.
The proposed $52 million sale of the Texas mining assets could provide some money for unsecured creditors, but it does not guarantee that Poolin Wallet customers will recover their full balances. The final amount available to creditors will depend on the outcome of the auction, sale costs, administrative expenses and the court’s approval of a liquidation plan. For former customers, the bankruptcy process could therefore determine how much they recover from the funds frozen nearly four years ago.
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