BlockFi Moves To Sell $160 Million in Mining Machine-backed Loans
Bankrupt crypto lender BlockFi Inc. has taken steps to sell about $160 million of loans backed by 68,000 Bitcoin mining machines. Reports have indicated that the Jersey city-based company, which filed for protection from creditors in November, was one of the industries that started the bidding process for the loans last year.
Moreover, sources say that some of the loans that were going to be sold have already defaulted and appear to be undercollateralized based on the current prices of Bitcoin mining equipment.
The tremors of FTX’s fall, Three Arrows Capital’s liquidation, and Terra Luna’s destruction sent shockwaves throughout the industries in the crypto sector. Just like BlockFi, several crypto asset lenders had also filed for bankruptcy due to the fall of these once so-called “great” crypto companies.
BlockFi was once one of the financiers for Bitcoin miners, who were affected by the crypto winter and low prices of BTC. Reports have found that approximately $4 billion was raised through loans given by lenders for crypto mining companies.
Concurrently, Bloomberg reported that Bitdeer, a crypto mining firm, was supported by the Chinese billionaire Jihan Wu to set up a $250 million distressed fund. Reports also revealed that Grayscale, an investment management company, launched an entity to invest in Bitcoin mining hardware along with a digital currency group Foundry to further act as a remedy for the “struggling” mining sector.
Although reports claimed that crypto mining companies are struggling, BTC has risen up from its slumber. BTC is priced at $22,873, experiencing a 7.98% surge in a week and witnessing a 0.39% rise in a day.
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