BlockFi is reportedly looking to close deals as quickly as possible to take full advantage of current market conditions.
Bankrupt crypto lender BlockFi has won court approval to sell its crypto mining equipment as part of its ongoing efforts to repay creditors.
A court order filed on January 30 in the US Bankruptcy Court for the District of New Jersey allowed BlockFi to sell the assets, saying that doing so was “fair, reasonable and appropriate under the circumstances”.
The Court has accepted that the sale of assets is intended to maximize the recovery and “realizable value” of the company.
With the court clearing BlockFi, more bids are now expected for the crypto lender’s cryptocurrency mining assets.
The document containing “all winning bids” must be sent to the subjects indicated in the bidding procedures by February 20.
Bids must be submitted to the court by March 2, and creditor representatives have until March 16 to object to the transfer of assets to qualified bidders.
In order to participate in the bidding process, prospective bidders must submit a written proposal to each “debtor defendant.”
The proposal must propose a purchase price, as well as the specific assets the bidder is acquiring and how the assets will be financed.
According to a Jan. 31 Bloomberg report, BlockFi’s tight deadline is an effort to get deals done as quickly as possible to make the most of the current market conditions, which have seen most cryptocurrencies rise in sideways prices for months on end. .
The report said BlockFi’s lawyer, Francis Petrie, told the court that the company has already received interest from bidders on several assets and expects more to come.
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On January 24, it was reported that BlockFi sold $160 million in loans backed by around 68,000 Bitcoins.
mining machinery in bankruptcy proceedings.
BlockFi started the loan fire sale process last year, the terms of which some had already defaulted on in the cryptocurrency market.