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The bankrupt cryptocurrency lender BlockFi has obtained approval to sell its crypto mining equipment as it tries to repay its creditors.
BlockFi has received approval from the United States Bankruptcy Court for the District of New Jersey to sell off its assets as part of its ongoing effort to repay its creditors. The court order, filed on January 30, said doing so was “fair, reasonable, and appropriate under the circumstances.” The court further added that the sale of BlockFi’s assets would maximize the recovery and “realizable value” of the company.
Potential suitors have been given until February 20 to submit their bids for the assets. According to reports by Decrypt, if applicable, an asset auction will be held on February 28. The creditor’s representatives have until March 16 to object to the sale of BlockFi’s assets. To participate in the bidding process, bidders must submit a written proposal to each of the “co-counsel to the debtors.” Submissions must include the proposed purchase prices, the specific assets a bidder is seeking to acquire, and information on how they plan to finance the purchase of said assets.
BlockFi Considers Selling Mining Equipment
BlockFi is considering including their vast amounts of crypto-mining equipment under assets up for sale. A recent report by Bloomberg revealed that BlockFi was considering getting rid of 8,000 Bitcoin mining machines in exchange for up to $160 million in loans. The Bloomberg article added that BlockFi’s fast-approaching deadline is to attract bids as soon as possible to take advantage of current cryptocurrency market conditions, which have seen most currencies rally after a disastrous crypto winter. Francis Petrie, the lawyer on record for BlockFi, explained to Judge Kaplan, who oversees BlockFi’s legal proceedings, that the firm has already received initial bids for its assets, adding:
We’ve received substantial interest in the market for bidding purposes and current volatility in the cryptocurrency market, which means we need to act quickly.
BlockFi filed for bankruptcy in November following the collapse of FTX due to its significant exposure to the exchange. Not long after it filed for bankruptcy, it emerged that the firm owed three of its largest creditors over $1 billion. BlockFi’s bankruptcy proceedings have revealed the firm has over 100,000 creditors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.