Bankruptcy Court Allows Bidding on BlockFi’s Crypto Mining Equipment

  • Cryptocurrency lender BlockFi has received approval from the Bankruptcy Court to invite bids for its mining equipment.
  • The deadline for submitting bids is February 20th.

The US Bankruptcy Court for the District of New Jersey has given BlockFi the go-ahead to invite bids for its cryptocurrency mining business. The approval came a week after the bankrupt cryptocurrency bank revealed its plans to sell nearly $160 million in loans backed by more than 67,000 Bitcoin miners.

BlockFi wants to take advantage of the market conditions

According to a report before bloombergUS Bankruptcy Judge Michael Kaplan has approved BlockFi’s request to hold an auction of cryptocurrency mining equipment, two months after the cryptocurrency lender filed for bankruptcy. Francis Petrie, the attorney representing BlockFi, revealed that the current market conditions prompted the company to speed up the auction process.

Petri said:

“We have received a lot of market interest for bidding purposes and the current volatility in the cryptocurrency market means we need to act quickly.”

Moreover, he added that his client intends to take advantage of the recent surge in the cryptocurrency mining sector.

According to Petrie, BlockFi has already received several bids for its mining equipment. The deadline for buyers to submit their offers is 20th February. This will be followed by an auction, which will be held a week after the deadline. All deals made during the auction process must be approved by the Bankruptcy Court in March.

Good news for the cryptocurrency mining sector

The cryptocurrency sector appears to be heading towards calmer waters after suffering from a market downturn for months. The renewed positive sentiment also prompted Celsius to seek buyers for approximately $1.3 million worth of mining equipment.

Publicly traded cryptocurrency mining companies like Argo Blockchain and Core Scientific have seen their share prices surge in the first month of 2023.

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