BlockFi’s request for an auction to sell its mining equipment has been approved by the bankruptcy court. Potential buyers have until February 20th to submit their bids. Initial bids have already been received by the crypto lender for various assets. All deals made during the auction must be approved by the bankruptcy court. BlockFi has been approved by the U.S. Bankruptcy Court of the District of New Jersey for the establishment of an auction for its crypto mining company. Judge Michael Kaplan’s approval for the bankrupt crypto lender, to accept bids on its crypto mining equipment, two months after the firm filed chapter 11 bankruptcy.
BlockFi received its first bids in the volatile crypto market
BlockFi’s lawyer Francis Petrie told Judge Kaplan that BlockFi has already received first bids for its assets. Bloomberg reports that the firm wants to close the bidding and auction process quickly to take advantage of current market conditions.
We have received significant interest in the market for bidding purposes, and current volatility in cryptocurrency market, so we need to act fast,”BlockFi lawyer Francis Petrie
BlockFi’s mining equipment will be available for purchase by potential buyers until February 20, 2018. Any deals made during this bidding process will need to be approved by the bankruptcy court in March. According to the lawyers of the crypto lender, this could be the first of many possible auctions.
BlockFi’s decision to sell its crypto mining business is in the midst of a boom in the mining industry. After months of high electricity costs and rising bitcoin hashrates for months, the crypto-mining sector finally saw an improvement in this month. Blockchain.com data shows that crypto miners saw an increase of 50% in their revenue this month. Many crypto firms have sold off mining-related assets due to the change in sentiment. This includes Celsius, a crypto lender that announced earlier this month the sale of $1.3 Million worth of mining equipment.