Blockfi to Auction off Crypto Mining Assets

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  • Blockfi has been given permission to auction off its crypto mining assets
  • The bankrupt lending platform argued that the recent crypto price jump made it a good time to sell them
  • The auction will be conducted by the end of February

Blockfi this week received approval from a bankruptcy court to hold an auction for its crypto mining assets, with the auction due to take place at the end of February. Blockfi hopes to take advantage of the uptick in the crypto market and has received substantial interest in the market according to one of its lawyers. The news comes after another bankrupt crypto lending platform, Celsius Network, said that it too is aiming to sell tens of thousands of mining machines in order to raise funds.

Court Says Auction is Right Thing for Creditors

Blockfi, which is based in New Jersey, filed for bankruptcy in November with plans to either sell or reorganize its assets to repay creditors. Part of this was its crypto mining assets, which its legal team recently asked the court for permission to sell. The bankruptcy court ruled on this matter yesterday and approved the motion, noting that Blockfi had “articulated good and sufficient reasons” for auctioning off the mining gear, adding that such a sale was “designed to maximize the recovery” for creditors.

Crypto Mining Sees Slight Recovery

Any unsold assets will be restructured as part of the company’s proposal to exit bankruptcy, Blockfi’s legal team said in court. BlockFi previously provided loans backed by computer rigs to Bitcoin miners, which have faced difficulties in recent months due to low Bitcoin prices and high electricity costs.

However, as Celsius’ lawyers pointed out during a court hearing last week, a rise in the Bitcoin price has alleviated the pressure somewhat and makes this a good time to try and cash in on related assets.