BlockFi permitted to auction mining equipment

BlockFi has gained permission in bankruptcy court to sell its cryptocurrency mining equipment, Bloomberg reported  Jan. 30.

Bloomberg cited statements made by BlockFi representatives during a video hearing today.
The company’s lawyer, Francis Petrie, said:

“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.

Petrie said the bidding period for BlockFi’s mining equipment will conclude on Feb. 20. The auction will begin one week later, and any deal that results from the process will be approved in March. The company has reportedly received initial bids already.

BlockFi intends open bidding as soon as possible in order to capitalize on the cryptocurrency market’s recent gains.

Reports from Bloomberg last week suggest that BlockFi plans to sell $160 million of loans backed by 68,000 mining machines — as opposed to the equipment itself. This sale appears to be a separate auction, as its bidding deadline ended Jan. 24.

BlockFi could sell other assets in order to recover from insolvency, though no detailed plans have been announced in that regard to date. Any assets that BlockFi does not auction will be used in the firm’s restructuring process, Petrie said.

BlockFi is not the only bankrupt company to auction its mining business. Celsius entered an agreement to sell 2,687 mining rigs for $1.34 million this month — and the firm has several thousand other devices that it could potentially auction off.

Posted In: , Bankruptcy, Mining
Bookmark (0)

Related Posts

Liquid staking tokens rally by 15% as Ethereum Shapella upgrade draws near

Liquid staking tokens rally by 15% as Ethereum Shapella upgrade draws near

Liquid staking platform tokens have seen their values increase following news that staked Ethereum withdrawals would be enabled on April 12.

Bookmark (0)
CipherTrace report reveals almost 50% of crypto total market cap was lost in 2022

CipherTrace report reveals almost 50% of crypto total market cap was lost in 2022

Despite the loss, the total crypto market cap increased over 20% from the third-quarter in to the fourth-quarter in 2022.

Bookmark (0)
BNB smart chain (BSC) receives user proposal for lower transaction fees

BNB smart chain (BSC) receives user proposal for lower transaction fees

According to the proposal, BSC’s high gas fees have led to a decline in network activity — pushing its utilization to around 15-20%.

Bookmark (0)
Gate.io suspends withdrawals of SafeMoon following public burn bug exploit

Gate.io suspends withdrawals of SafeMoon following public burn bug exploit

The attack was carried out by hackers that attacked the BNB-based chain DEX, draining $8.9 million in funds before being found.

Bookmark (0)
CryptoSlate wMarket update: XRP leads top 10 as BTC breaks $28,000 once again

CryptoSlate wMarket update: XRP leads top 10 as BTC breaks $28,000 once again

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

Bookmark (0)
XRP rises 10% against Bitcoin as USD value rises to five-month high

XRP rises 10% against Bitcoin as USD value rises to five-month high

Blockchain analytical firm Santiment reported that XRP’s social dominance is at its highest point in a year following its surge to $0.49.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *