BlocksInform
The failed crypto-currency blockfi lender has been granted approval to sell its crypto-mining equipment while trying to pay off its creditors.
Blockfi got approval from the U.S. bankruptcy court for the New Jersey district to sell its assets as in his continuing efforts to repay his creditors. The court order, filed on January 30, said doing so was “fair, reasonable, and appropriate under the circumstances.” The court added that selling BlockFi's assets would maximize the company's recoverability and "realizable value".
Prospective applicants have until February 20 to present their submissions. According to reports by Decrypt, if applicable, an asset auction will be held on February 28. Representatives of the creditor shall have until 16 March to oppose the sale of the blockfi assets. Participate in the call for proposals process, Tenderers should present a written proposal to each of the "co-lawyers of debtors", the particular assets sought by the bidder, and information on the way in which they intend to finance the purchase of these assets.
BlockFi is looking at the sale of mining equipment.
BlockFi plans to include its large quantities of cryptoextraction material in its assets 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, counsel for BlockFi, told Justice Kaplan, who oversees BlockFi's court proceedings, that the firm has already received the first offers for its assets, adding:
We have received substantial market interest in tenders and the current volatility in the cryptocurrency market, which means that we need to act quickly.
Blockfi filed out of business in November following the collapse of ftx due to its large trade exposure. Shortly after declaring bankruptcy, the company was found to owe more than $1 billion to three of its largest creditors. BlockFi's bankruptcy procedure revealed that the company has more than 100,000 creditors.
