BlockFi permitted to auction mining equipment

BlockFi has gained permission in bankruptcy court to sell its cryptocurrency mining equipment, Bloomberg reported  Jan. 30.

Bloomberg cited statements made by BlockFi representatives during a video hearing today.
The company’s lawyer, Francis Petrie, said:

“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.

Petrie said the bidding period for BlockFi’s mining equipment will conclude on Feb. 20. The auction will begin one week later, and any deal that results from the process will be approved in March. The company has reportedly received initial bids already.

BlockFi intends open bidding as soon as possible in order to capitalize on the cryptocurrency market’s recent gains.

Reports from Bloomberg last week suggest that BlockFi plans to sell $160 million of loans backed by 68,000 mining machines — as opposed to the equipment itself. This sale appears to be a separate auction, as its bidding deadline ended Jan. 24.

BlockFi could sell other assets in order to recover from insolvency, though no detailed plans have been announced in that regard to date. Any assets that BlockFi does not auction will be used in the firm’s restructuring process, Petrie said.

BlockFi is not the only bankrupt company to auction its mining business. Celsius entered an agreement to sell 2,687 mining rigs for $1.34 million this month — and the firm has several thousand other devices that it could potentially auction off.