BlockFi will sell its mining equipment
Cryptocurrency company BlockFi hopes to raise $5 million from its bankruptcy
Cryptocurrency-based financial services company BlockFi, which has filed for bankruptcy before US authorities, has been cleared by the bankruptcy court to sell its crypto mining equipment and other physical assets in order to raise around $5 million dollars.
The assets will be sold at an auction in which there was a lot of interest for the physical equipment. Part of the assets will be acquired by an entity called US Farms.
It should be noted that the firm received authorization at the end of January to organize the auction. At the time, BlockFi’s lawyer claimed that they were interested in doing so as soon as possible, to take advantage of the current interest among mining companies and services to get hold of their high-end equipment.
Although the estimated price of the devices in his possession was around $160 million, the associated value has dropped dramatically over the last year due to many of these being ASIC machines. It is important to mention that the US managed a rather incisive policy on cryptomining activities, promoting the use of renewable energies and trying to mitigate the carbon footprint they generate.
BlockFi continues with its bankruptcy process to gather sufficient assets and honor commitments made to creditors and users who were affected by the insolvency it went through in 2022. In January of this year, the court granted permission to BlockFi to use part of its capital and make more competitive salary proposals to its workers.
(Reference image source: file)
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