Cryptocurrency mining pool operator Poolin, along with two US affiliates, has filed for Chapter 11 bankruptcy protection and is seeking to sell its West Texas mining assets.

Singapore-based Poolin Technology Pte Ltd, Lonestar Dream Inc, and Lonestar Taproot LLC filed voluntary petitions on July 22 in the US Bankruptcy Court for the District of New Jersey.

Lonestar Dream ceased mining and hosting activities at its Pyote and Tarbush facilities on July 10. A limited workforce has been retained to secure the properties and assist with the sale process.

The companies have entered into two asset purchase agreements with Thor CALAP LLC, which has offered $15m for the Pyote property and its associated power rights and equipment, and $37m for the power rights and equipment at Tarbush. The Tarbush deal does not include the facility’s surface-use agreement.

Thor’s combined $52m offer will act as a stalking-horse bid, establishing the minimum price for the assets during the bankruptcy auction. The two transactions can proceed separately and remain subject to higher offers and court approval.

According to a declaration filed by chief restructuring officer Michael DuFrayne, the companies contacted more than 335 potential buyers and investors during a three-month marketing process.

The campaign targeted cryptocurrency miners alongside AI and high-performance computing operators, hyperscalers, data center infrastructure companies, real estate investment trusts, and private equity firms. It resulted in 28 non-disclosure agreements and seven letters of intent.

Poolin’s petition estimates that the company has between 10,001 and 25,000 creditors, assets of between $1m and $10m, and liabilities ranging from $100m to $500m.

DuFrayne put the debtors’ total pre-bankruptcy obligations at approximately $173.1m. Around $163.7m relates to unsecured IOUs issued to approximately 11,700 Poolin Wallet customers after withdrawals were suspended during the 2022 cryptocurrency downturn.

Poolin was founded in China in 2017 and was regarded as the world’s largest cryptocurrency mining pool by September 2019. The company began relocating mining equipment following China’s 2021 ban on cryptocurrency mining.

Its affiliates subsequently developed the Pyote facility in Ward County and the Tarbush site in Pecos County. The projects were initially expected to receive up to 600MW from Texas-New Mexico Power, but were allocated 100MW.

Poolin ordered equipment based on the larger projected allocation and later sold surplus miners at a loss. Unaudited accounts cited in the bankruptcy declaration show approximately $8.8m in equipment-sale losses between fiscal 2023 and 2025.