BlockFi gets court nod to sell crypto mining assets

Bankrupt crypto lender BlockFi has received court approval to sell its crypto mining equipment as part of ongoing efforts to pay off its creditors.

a court order archived on January 30 in the United States Bankruptcy Court for the District of New Jersey granted approval for BlockFi to sell the assets, saying doing so was "fair, reasonable, and appropriate under the circumstances."

Court admitted that the sale of the assets is designed to maximize the recovery and “realization value” of the company.

With the court giving BlockFi the green light, more offers are now expected to arrive for the cryptocurrency lender's crypto mining assets.

The document indicating "all qualified bids" must be sent to the parties specified in the bidding procedures before the February 20 deadline.

Offers must be filed with the court by March 2 and creditor representatives have until March 16 to object to the sale of the assets to qualified bidders.

In order to participate in the bidding process, prospective bidders must submit a written proposal to each of the “co-advisers of 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 it will finance the assets.

According to a Bloomberg report on January 31 reportBlockFi's tight deadline is an effort to get deals as quickly as possible to get the most out of the current market conditionswhich have seen most cryptocurrencies rise after months of sideways price action.

The report says that BlockFi's lawyer, Francis Petrie, told the court that the company has already received interest from bidders for several assets and expects more to come.

Related: Crypto Biz: A Peek Into BlockFi's Secret Finances (Not Pretty)

On January 24, it was reported that BlockFi had been selling $160 million in loans backed by approximately 68,000 Bitcoin (BTC) mining machines as part of the bankruptcy procedure.

BlockFi began the process of selling the loans last year, and some had already defaulted due to crypto market conditions.