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Woofun AI reports that Singapore-based Bitcoin mining pool Poolin and two US affiliates filed for Chapter 11 bankruptcy in a New Jersey court on Wednesday, initiating a liquidation process for its West Texas operations. The filing seeks immediate court approval to sell two mining sites to Thor CALAP LLC, marking a definitive exit from traditional mining for the once-dominant operator.
The financial distress is quantified by estimated liabilities ranging from $100 million to $500 million, against assets valued at only $1 million to $10 million, leaving 10,001 to 25,000 creditors exposed. Per Woofun AI, the proposed stalking-horse bid totals $52 million, comprising $37 million for Tarbush assets including assumed liabilities and $15 million for the Pyote site with power rights and equipment. This sale is subject to a court-supervised auction with a bid deadline of Sept. 8.
Poolin’s decline is stark; once the world’s largest Bitcoin mining pool in 2019, it now ranks 17th by hashrate with just 0.2% market share according to Hashrate Index. This contraction mirrors broader sector instability, exemplified by NFN8 Group and two affiliates filing for Chapter 11 bankruptcy in the Western District of Texas in February as rising electricity costs force shutdowns.
Strategic pivots toward AI infrastructure are accelerating across the industry. Bitfarms initiated a complete wind-down of Bitcoin mining in November 2025 to focus on AI and high-performance computing data centers. Hut 8 and IREN recently announced major deals, with Hut 8 securing a 15-year, $9.8 billion lease for its AI campus and IREN disclosing $2.8 billion in cloud services contracts with AI developers.
Earlier in July, MARA Holdings announced plans to acquire a Texas site with up to 2 gigawatts of capacity to expand its AI and digital infrastructure business. Bernstein noted that such deals with third-party providers like Bitcoin miners are necessary for AI companies addressing computing power limits, signaling a permanent structural shift in asset utilization.
