Defunct Crypto Lender BlockFi Granted Approval to Sell Assets.

• Bankrupt crypto lending platform BlockFi received court approval to put its Bitcoin mining business up for auction. 
• This comes a week after the company agreed to sell $160 million in loans backed by its Bitcoin mining hardware.

BlockFi, the crypto lender that filed for bankruptcy in November 2022, has received approval from the United States Bankruptcy Court for the District of New Jersey to sell its crypto mining equipment and related assets. The sale is expected to help the company recover funds for its creditors.

The court order, which was issued on January 30, allows BlockFi to sell the assets through a competitive bidding process. The bidding deadline is February 20, and the auction will be held on March 2.

BlockFi’s lawyer, Francis Petrie, told the court that the company has already received interest in the bidding process and expects to receive more bids in the coming weeks. He said that BlockFi is seeking to sell the assets as quickly as possible in order to capitalize on the recent recovery in the cryptocurrency market.

The assets that BlockFi is selling include approximately 68,000 Bitcoin mining machines, which were backed by loans totaling $160 million. Some of these loans have already defaulted due to the decline in the cryptocurrency market.

The sale of the crypto mining equipment is just one part of BlockFi’s bankruptcy restructuring plan. The company is also seeking to raise new capital and reduce its debt load.

BlockFi is one of several crypto companies that have filed for bankruptcy in recent months. The collapse of the Terra ecosystem and the ongoing bear market have put a strain on many crypto businesses.

However, the recent recovery in the cryptocurrency market has provided some relief to BlockFi and other crypto companies. The sale of the crypto mining equipment is a sign that BlockFi is moving forward with its bankruptcy restructuring plan and is confident that it will be able to emerge from bankruptcy as a stronger company.