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On January 30, a New Jersey Bankruptcy Court allowed the bankrupt crypto lender BlockFi to sell off its crypto mining assets as part of ongoing efforts to repay its creditors. A court document stated that the approval for BlockFi to sell its assets was on the grounds that it was “fair, reasonable, and appropriate under the circumstances.”
BlockFi Allowed to Sell Crypto Mining Assets
The court acknowledged the sale of the assets is “designed” to maximize the recovery and “realizable value” of the company. The document stated “all qualified bids” must be sent to the parties specified in the bidding procedures by the Feb. 20 deadline. The bids must be filed with the court by Mar. 2 and the creditor's representatives have until Mar. 16 to make objections to the sale of the assets to the qualified bidders. To participate in the bidding process, potential bidders must deliver a written proposal to each of the co-counsel to the debtors. The proposal must include the proposed purchase price as well as the specific assets the potential bidder is interested in acquiring and how they will finance the assets.
BlockFi Seeks to Make the Most of Current Market Conditions
BlockFi’s tight deadline could be an effort to get bids as quickly as possible to make the most of the current market conditions, which have seen a surge in the value of most cryptocurrencies after months of sideways price action. BlockFi’s lawyer, Francis Petrie, told the court that the company has already received interest from bidders for various assets and expects more to come. BlockFi started the process of selling off the loans last year with some having already defaulted given the crypto market conditions. With the court giving BlockFi the green light, more bids are now expected to roll in for the crypto lender's crypto mining assets.