BlockFi Gets Court Approval to Sell Crypto Mining Equipment for Creditor Repayment

• BlockFi has been granted court approval to sell its crypto mining equipment as part of ongoing efforts to repay its creditors.
• The court order noted that the sale of the assets is designed to maximize the recovery and “realizable value” of the company.
• All qualified bids must be sent to parties specified in the bidding procedure by Feb. 20 and filed with the court by March 2.

BlockFi, a crypto lender, has been granted court approval to sell its crypto mining equipment in order to repay its creditors. The approval was granted by the United States Bankruptcy Court for the District of New Jersey on Jan. 30, noting that the sale of the assets was “fair, reasonable and appropriate under the circumstances.”

The court noted that the sale of the assets is designed to maximize the recovery and “realizable value” of the company. BlockFi reportedly wants to get bids in as quickly as possible, to make the most of the current market conditions. In order to do this, all qualified bids must be sent to parties specified in the bidding procedure by Feb. 20 and filed with the court by March 2. The creditor’s representatives have until March 16 to object to the sale of the assets to the qualified bidders.

The court order noted that the company would be required to provide the court with an accounting of all proceeds from the sale of the assets, which will be used to pay the creditors. It also noted that the company must follow certain procedures to ensure that the sale is conducted in a fair and transparent manner.

This sale is part of ongoing efforts by BlockFi to repay its creditors. The company filed for bankruptcy in November 2020 after it became unable to repay its debts. Since then, it has been working to find ways to repay its creditors and make the most of its assets. It is hoped that the sale of its crypto mining equipment will help the company get back on its feet and begin to repay its creditors.

It remains to be seen whether or not the sale of the crypto mining equipment will be successful in helping BlockFi to repay its creditors, but it is a step in the right direction. The court order is an indication that the company is taking the necessary steps to ensure that the sale is conducted in a fair and transparent manner and that the proceeds from the sale will be used to benefit all of the company’s creditors.