BlockFi is thought to want to receive offers as soon as possible in order to capitalize on current market circumstances.
BlockFi, the bankrupt cryptocurrency lender, has been given court permission to sell its crypto mining equipment as part of its ongoing efforts to repay its creditors.
According to a court filing filed on Jan. 30 in the United States Bankruptcy Court for the District of New Jersey, BlockFi’s asset sale was approved because it was “fair, reasonable, and suitable under the circumstances.”
The court noted that the asset sale is “planned” to maximize the recovery and “realizable worth” of the corporation.
With the court’s approval, further bids for the crypto lender’s crypto mining assets are anticipated to come in.
According to the paper, “all qualifying offers” must be sent to the parties indicated in the bidding processes by the February 20 deadline.
Bids must be lodged with the court by March 2, and creditors’ representatives have until March 16 to oppose the sale of assets to eligible bidders.
Potential bidders must present a “written proposal” to each of the “co-counsel to the debtors” in order to participate in the bidding process.
The proposal must include the intended acquisition price as well as the specific assets the potential bidder is interested in acquiring as well as how the assets will be financed.
According to a Jan. 31 Bloomberg story, BlockFi’s tight deadline is an attempt to collect bids as soon as possible in order to capitalize on current market circumstances, which have seen most cryptocurrencies see a price surge following months of sluggish price movement.
According to the newspaper, BlockFi’s lawyer, Francis Petrie, told the court that the business has already received bids for several assets and expects more to follow.
As part of its bankruptcy proceedings, BlockFi sold $160 million in debts secured by around 68,000 pieces of bitcoin mining equipment on January 24.
BlockFi began selling off the loans last year, with some already defaulting due to the crypto market circumstances.
