BlockFi permitted to auction mining equipment
According to Bloomberg, BlockFi has obtained permission from the bankruptcy court to sell cryptocurrency mining equipment. January 30th.
Bloomberg quoted statements made by BlockFi representatives during today’s video hearing.
Francis Petrie, the firm’s attorney, said:
“We have great interest in the market for bidding purposes and the current volatility in the cryptocurrency market means we need to act quickly.
Petrie said BlockFi’s mining equipment bidding period ends on February 20. The auction will begin in a week after he has completed the process, and the resulting deal is expected to be approved in March. The company has reportedly already received its first bid.
BlockFi plans to open a public tender as soon as possible to take advantage of the recent gains in the cryptocurrency market.
Bloomberg reported last week that BlockFi plans to sell a $160 million loan backed by 68,000 mining machines, not the equipment itself. The sale appears to be a separate auction as the bidding deadline ended January 24th.
BlockFi may sell other assets to recover from bankruptcy, but no detailed plans have yet been announced for this. Assets that BlockFi does not auction will be used in the company’s restructuring process, Petrie said.
BlockFi is not the only bankrupt company to auction its mining business. Celsius signed a deal this month to sell 2,687 of his mining rigs for $1.34 million. The company has thousands of other devices that could be put up for auction.