Former bitcoin mining giant Poolin Technology Pte. Ltd. has filed for Chapter 11 bankruptcy protection. The Singapore-based company seeks to sell its remaining Texas mining operations after shutting them down on July 10.
The filing covers Lonestar Dream Inc. and Lonestar Taproot LLC, with liabilities reaching between $100 million and $500 million. However, Chief Restructuring Officer Michael DuFrayne estimates prepetition obligations at about $173.1 million.
Significantly, customer claims account for roughly $163.7 million of that debt. Poolin issued those unsecured IOUs after suspending wallet withdrawals during the 2022 crypto market crash.
$52 Million Bid Sets Auction Floor
Moreover, Poolin plans to sell its US mining assets rather than pursue a traditional restructuring. Thor CALAP LLC has offered $52 million as the stalking horse bidder.
The proposal includes $15 million for the Pyote property and related assets. Additionally, it allocates $37 million for Tarbush power rights and equipment.
Consequently, the court process could attract competing offers for the assets. Buyers may also purchase the properties separately if that approach delivers better creditor recoveries.
Besides, Poolin’s financial troubles highlight the lasting impact of the 2022 crypto downturn. The company previously borrowed heavily against digital assets before falling collateral values triggered severe financial pressure.
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