Poolin, a Bitcoin mining company that once ranked among the largest mining pools in the world, has filed for bankruptcy after losing its position in the industry. The Singapore-based firm previously handled close to one-fifth of Bitcoin’s global hashrate but is now facing approximately $173 million in liabilities and preparing to sell off remaining assets.

The company, along with its U.S. affiliates Lonestar Dream and Lonestar Taproot, filed for Chapter 11 bankruptcy protection, with total estimated liabilities ranging from $100 million to $500 million.

Poolin submitted its bankruptcy petition in New Jersey on July 22, listing around $173 million in debt as it seeks court protection while restructuring its operations.

The company’s remaining mining assets are already attracting interest, with Thor CALAP LLC reportedly making a $52 million offer for two mining facilities located in West Texas. Those sites represent a substantial portion of Poolin’s current asset base.

During its peak years, Poolin was one of the most influential Bitcoin mining pools globally. The platform’s miners contributed enough computing power to give Poolin an estimated 18% to 20% share of Bitcoin’s total network hashrate in 2019, according to Glassnode data.

The company’s financial problems began surfacing in 2022, when users started reporting withdrawal delays through Poolin’s Telegram channels amid a broader crypto market liquidity crisis. Co-founder Kevin Pan later admitted that the company was facing liquidity difficulties but stated that customer funds were not at risk.

Poolin’s recovery plans also faced setbacks as its expansion into Texas encountered delays, particularly around approvals for connecting its mining operations to the power grid.

In September 2022, Poolin Wallet halted withdrawals and distributed approximately $163.7 million in IOU tokens to about 11,700 customers as the company attempted to address its financial challenges.

Since then, Poolin’s role in Bitcoin mining has dramatically diminished, with its estimated share of the network’s hashrate effectively falling to zero for several years.

The company has not responded to requests for additional information about the bankruptcy proceedings.