One of the largest Bitcoin mining pools has filed for bankruptcy. Why this is more significant than it seems

For most newcomers, the name Poolin probably doesn't mean much. But those who were in the crypto market a few years ago surely remember this company well.

As far back as 2019, Poolin was among the world’s largest mining pools. It accounted for nearly 20% of the Bitcoin network’s total hash rate. In fact, one out of every five blocks on the network was mined by miners connected to this particular pool.

In addition to the mining pool itself, the company developed its own crypto wallet, lending services, and infrastructure for large-scale miners, and invested in the construction of mining facilities in the United States. At the time, it seemed that Poolin’s position was virtually unshakable.

How One of the Market Leaders Found Itself on the Brink of Collapse

The first major problems arose in 2021, when China virtually banned Bitcoin mining.

Although the company was registered in Singapore, a significant portion of its business was closely tied to the Chinese market. Poolin had to urgently relocate its equipment and set up new infrastructure outside the country. Such relocations cost tens of millions of dollars and dealt a serious blow to the company.

Then came the year 2022.

Bitcoin fell below $20,000, mining profitability plummeted, equipment prices began to drop rapidly, and infrastructure maintenance costs remained virtually unchanged.

That was when the financial problems became apparent.

In September 2022, Poolin unexpectedly suspended withdrawals from its own wallet. It later became clear that the company was no longer able to meet its obligations to users. To buy time, the company began issuing IOUs to customers with a promise to repay the funds in the future.

The End of the Story

After nearly four years, the story came to its logical conclusion.

Poolin has officially filed for Chapter 11 bankruptcy in the United States. According to court documents, the company’s total liabilities amount to approximately $173 million, and roughly 11,700 customers remain unable to access their funds.

The company is currently trying to sell off its remaining assets, including two large mining facilities in Texas, in order to at least partially repay its creditors.

But the most interesting part is happening right now

At first glance, it seems like just another story about a major crypto company going bankrupt.

However, it is much more interesting to look at what is happening with its infrastructure.

Just a few years ago, facilities like these were built exclusively for Bitcoin mining. Today, companies working in the fields of artificial intelligence and high-performance computing are showing increasing interest in them.

The reason is obvious.

Modern AI data centers require enormous amounts of electricity, powerful cooling systems, and existing engineering infrastructure. Former mining farms possess precisely these characteristics.

In essence, the infrastructure that was originally created to secure the Bitcoin network is gradually being used to train neural networks and advance artificial intelligence.

What Does This Mean for the Market?

Poolin's story shows just how quickly the crypto industry is changing.

Just a few years ago, computing power for Bitcoin mining was considered the main asset. Today, that same computing power is becoming a strategic resource for companies developing artificial intelligence.

In fact, we are seeing the two largest technology sectors begin to overlap. Mining data centers are getting a second lease on life, and investments that were once made for Bitcoin can now be redirected toward AI development.

KLЁ's Opinion

The crypto market has seen major players collapse time and again: Mt. Gox, FTX, Celsius, BlockFi. Now Poolin has joined that list.

The story of Poolin is yet another reminder of just how quickly the crypto industry is changing.

Yesterday, the company controlled nearly one-fifth of global Bitcoin mining and was considered one of the industry leaders. Today, it is undergoing bankruptcy proceedings and selling off its assets.

At the same time, however, we are seeing another trend. The infrastructure created by cryptocurrencies does not disappear along with the companies. It lives on and is already becoming the foundation for a new technological race—the race for artificial intelligence.