In a large bowl, mix the peanut butter, butter, and powdered sugar until thoroughly combined. Shape 1 inch balls and place them on a baking sheet lined with parchment paper. Refrigerate for 30 minutes.
Place the chocolate chips and coconut oil in a heatproof bowl and set it over a saucepan with 1-2 inches of simmering water. Stir chocolate until melted. It can take about 2 to 3 minutes.
Using a fork and a toothpick, dip the balls, one at a time, into the melted chocolate until completely coated. Using the toothpick push the coated ball off the form and onto a baking sheet lined with parchment and freeze for 15 minutes for chocolate to set.