Bitcoin (CRYPTO: $BTC) mining operator Poolin Technology has filed for Chapter 11 bankruptcy.
The Singapore-based company, which operated a Bitcoin mining pool, sought protection from its creditors in a New Jersey court.
A Bitcoin mining pool is a group of cryptocurrency miners who combine their computer processing power to increase their chances of minting new BTC.
In its bankruptcy filing, Poolin listed assets of between $1 million U.S. and $10 million U.S. and liabilities of as much as $500 million U.S.
The petition estimates that the company has between 10,001 and 25,000 creditors.
Poolin told the court that it entered Chapter 11 bankruptcy to carry out a sale of its business and preserve value for creditors.
Under the sale timetable, qualified bids are due by Sept. 8 of this year with an auction scheduled for Sept. 10.
The bankruptcy filing of Poolin comes as a growing number of Bitcoin miners pivot to operating artificial intelligence (A.I.) and high-performance computing (HPC) data centres.
Leading Bitcoin miners such as Riot Platforms (NASDAQ: $RIOT) and Hut 8 (NASDAQ: $HUT) have taken this approach.
Poolin was privately held and its stock did not trade on a public exchange.
