BlockFi starts selling mining assets
BlockFi, the bankrupt cryptocurrency lender, has begun receiving offers for its mining business assets and expects more before the February 20 deadline
BlockFi, the bankrupt cryptocurrency lender, has begun receiving offers for its mining business assets and expects more before its February 20 deadline.
According to BlockFi’s lawyer, Francis Petrie, the company wants to get offers as soon as possible to take advantage of current market conditions.
The auction will take place about a week later, and any proposed deals will be submitted for approval in March. BlockFi filed for bankruptcy in November with plans to sell or reorganize its business to repay its creditors.
Unsold assets will be reorganized as part of a proposal to exit bankruptcy. The company was a major financier of bitcoin miners who have been hit by low cryptocurrency prices and high electricity costs, through loans backed by mining equipment.
Profitability has increased in recent months due to lower energy costs. The bankruptcy of bitcoin miners and lenders has created a growing market for distressed assets.
Companies like Bitdeer and Grayscale have set up funds and entities to invest in distressed Bitcoin mining hardware.
(Reference image source: file)
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