US Bankruptcy Court Allows BlockFi to Sell Its Crypto Mining Assets
US Bankruptcy Court Allows BlockFi to Sell Its Crypto Mining Assets

Interested parties have less than a month to submit their bidding offers for BlockFi crypto mining assets.

BlockFi, a now-bankrupt crypto lender established in 2017, has received approval from the United States Bankruptcy Court for the District of New Jersey to sell its crypto mining assets.

According to a court order issued on January 30th, the US Bankruptcy court acknowledged that the sale of BlockFi crypto mining assets is necessary to maximize the “realizable value” of the firm.

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On top of that, in the order, the US Bankruptcy Court noted that allowing BlockFi to sell its mining assets is “fair, reasonable, and appropriate under the circumstances.”

After receiving the court’s approval, BlockFi is set to start a bidding process for its crypto-mining assets. Based on the order, “all qualified bids” must be sent to all parties by February 20th and filed with the US Bankruptcy Court by March 2nd.

The written proposal should contain the offered purchase price in US dollars and identify “which specific assets the potential bidder intends to acquire, any liabilities the potential bidder intends to assume, and which assets the potential bidder does not intend to acquire.”

Moreover, in the offer, bidders are asked to identify how they will finance the assets, provide all information that is believed to be assisting the evaluation of the proposal, and so on.

The representatives of BlockFi creditors can object to any bidding offer until March 16th.

News portal Bloomberg covered the news on January 31st, stating that a now-bankrupt crypto lender wants to start the bidding process as soon as possible to “take advantage of current market conditions.”

Moreover, BlockFi’s lawyer, Francis Petrie, reportedly told US Bankruptcy Court that the crypto lender has received “some initial bids” for crypto mining assets and is expecting more in the weeks to come.

BlockFi filed for Chapter 11 bankruptcy at the end of November. At that time, the company claimed that with the filing BlockFi aimed to “stabilize its business” and create “a comprehensive restructuring transaction that maximizes value for all clients and other stakeholders.”

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

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