According to reports, BlockFi aims to place bids as soon as feasible to take advantage of the current market circumstances.
- Insolvent companies that sell mining equipment include BlockFi and Celsius.
- After power prices dropped, interest in cryptocurrency mining increased.
Court’s Order
To continue paying off its creditors, insolvent cryptocurrency lender BlockFi has been given court clearance to sell off its crypto mining hardware. In a court ruling dated January 30 and issued in the United States Bankruptcy Court for the District of New Jersey, BlockFi was permitted to sell the assets because it was “fair, reasonable, and suitable under the circumstances.” The court agreed that the assets’ sale is intended to increase the company’s recovery and “realizable worth.”
Greenlight for more Bidders!
Now that the court has cleared BlockFi, more bids are expected to be directly submitted for the cryptocurrency lender’s mining assets. The contract required that “all qualified offers” be forwarded to the parties named in the bidding procedures by the deadline of February 20.
The representatives of creditors have until March 16 to object to the sale of the assets to the qualified bidders, and the qualifying bidders must submit their offers to the court by March 2 to do so. To participate in the bidding process, prospective bidders must submit a formal proposal to each “co-counsel to the debtors” in writing. The suggested acquisition price, mode of financing, and assets that the potential bidder is interested in purchasing must all be specified in the proposal.
Bloomberg’s Report
BlockFi’s stringent deadline, according to a January 31 Bloomberg report, is an endeavor to gather bids as soon as possible to take advantage of the current market circumstances, which have seen significant cryptocurrencies jump following months of lethargic price activity.
The corporation has already received interest from bidders for several assets, and Francis Petrie, BlockFi’s attorney, reportedly told the court that the company anticipates getting more. The sale of $160 million in loans secured by more than 68,000 Bitcoin mining equipment by BlockFi as part of the bankruptcy proceedings was made public on January 24.
During a Monday morning video court hearing, BlockFi attorney Francis Petrie stated that the company intends to submit bids as soon as possible to benefit from the current market circumstances. Petrie informed US Bankruptcy Judge Michael Kaplan that the company has already received preliminary requests for certain assets and anticipates more.
We must move swiftly, according to Petrie, because of the market’s current volatility and the significant interest we have received for bid-related purposes. At a time when the cryptocurrency mining industry is expanding, BlockFi is offering computer equipment used for digital mining money. Another failed cryptocurrency network, Celsius Network, said it planned to sell tens of thousands of mining rigs last week.
Conclusion
Due to the state of the bitcoin market, some of the loans were already in default when BlockFi began the auction process last year. Rising demand for distressed assets has been produced by struggling Bitcoin miners and insolvent lenders. The biggest digital asset management Grayscale created an entity to invest in Bitcoin mining equipment with its sister business and launched a $250 million distressed fund to profit from the faltering mining sector.
