BlockFi, a globally popular cryptocurrency lender, opted to file for chapter-11 bankruptcy in the last week of November 2022. The company states that FTX’s collapse is the main reason for filing for bankruptcy.
Recently the bankruptcy court approved its plea to sell off its crypto-mining equipment to repay its creditors. BlockFi filed a court document on January 30, 2023, in the United States Bankruptcy Court for the District of New Jersey seeking court approval to sell its assets on the ground that it was “fair, reasonable and appropriate under the circumstances.”
The auction will include selling computer equipment required for mining operations, and as per the reports, the company has more than a thousand such pieces of equipment.
The bankruptcy court admitted that the sale of the asset is proposed to recover more funds and determine the real and realizable value of BlockFi.
The court’s consent for selling crypto assets of BlockFi will boost the bidding procedure, and it is expected that more buyers will join the race to purchase the mining equipment from the crypto lender.
The court decided Feb.20 as the deadline for the bidding procedure and stated in the document that all bids must be submitted before or till this decided date.
Francis Petrie, representing BlockFi, informed the court that the lending firm has already received several bids from buyers and expects to receive more in the coming times.
Petrie “We’ve received substantial interest in the market for bidding purposes and current volatility in the cryptocurrency market, which means we need to act quickly.”
Attorneys for BlockFi had revealed before that the loan to Alameda was estimated at $671 million; at the same time, $355 million in virtual assets struck on the FTX exchange. Bitcoin and Ethereum have since regrouped, shooting the worth of those holdings.
BlokFi Investments
According to Crunchbase BlockFi has invested in 12 different companies and startups and is a lead investor in one other firm. The lending firm has invested in Supermojo, Elwood technologies, GamersGains Lab, Coin Metric, Hex trust, Notabene, Blockdaemon and Jeeves.
BlockFi was second, and Genesis Global was third to follow the path of FTX bankruptcy.
BlockFi was second, and Genesis Global was third to follow the path of FTX bankruptcy.
Genesis had massive and prolonged exposure with the once third largest crypto exchange FTX and failed crypto hedge fund, 3 Arrows Capital. After FTX filed for bankruptcy, 3 Arrows followed suit soon because of its exposure to FTX.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/01/31/blockfi-earned-court-approval-to-sell-crypto-mining-equipment/