BlockFi Got Approval to Set UP Auction of Crypto Mining Assets
Due to the FTX breakout, the crypto lending platform BlockFi filed for chapter 11 bankruptcy protection on November 28, 2022. On Monday, the company got approval from the United States Bankruptcy Court for the District of New Jersey to hold an auction for its crypto-mining assets.
The company wants to get bids in as soon as possible to focus entirely on current market conditions, according to BlockFi lawyer Francis Petrie, who told US bankruptcy judge Michael Kaplan on Monday during the court hearing that the company has already received some initial offers for various assets and expects more.
Petrie said that
“Due to the current volatility in the crypto market and the substantial interest in the market for bidding reasons, we need to act rapidly.”
BlockFi Auction Includes:
BlockFi is offering computer equipment needed for mining digital coins at a time when the crypto-mining industry is on the ascent. Another bankrupt crypto network, Celsius Network, said last week that it plans to sell tens of thousands of mining devices.
Furthermore, The offers for the mining assets are due on February 20, and an auction will be placed roughly a week later, according to Petrie. The firm will return to court in March for approval of any proposed deal that results from the auction.
According to the source, New Jersey-based BlockFi is dumping computer equipment within its crypto-mining operation in the middle of a broader market surge that has persisted since the beginning of 2023. Any planned auction transaction will be subject to judicial clearance in March.
BlockFi, a once-prominent financier for Bitcoin miners, went bankrupt last year as low bitcoin prices mixed with rising electricity bills harmed miners’ profitability. As a result of this dynamic, some miners, like core scientific, one of the largest publicly traded producers of BTC, declared bankruptcy.
BlockFi is not the only bankrupt firm auctioning off its mining operations. This month, Celsius agreed to sell 2,687 ming rigs for $1.34 million, and the business has thousands of other devices that it might potentially auction off.