BlockFi Gets The Nod To Accept Bids For Crypto Mining Business

• The bankruptcy court has approved BlockFi’s request to set up the auction for its mining equipment. 
• Potential buyers will have till 20 February to submit their bids. 
• The crypto lender has already received initial bids for various assets. 
• All deals made during the auction will be subject to approval from the bankruptcy court. 

BlockFi has received approval from the U.S. Bankruptcy Court for the District of New Jersey to set up an auction for its crypto mining business. Judge Michael Kaplan’s decision to allow the bankrupt crypto lender to accept bids for its crypto mining equipment two months after the firm filed for chapter 11 bankruptcy. 

BlockFi has received initial bids amid the volatile crypto market

Francis Petrie, the lawyer for BlockFi, told Judge Kaplan that the crypto lender has already received initial bids for its assets. According to a report by Bloomberg, the firm wants to conclude the bidding and auction process as soon as possible to take advantage of the current market conditions. 

We’ve received substantial interest in the market for bidding purposes and current volatility in the cryptocurrency market, which means we need to act quickly,”

BlockFi lawyer Francis Petrie

Potential buyers will have until 20 February to submit their bids for BlockFi’s mining equipment. Any deals made during the bidding process will be subject to approval from the bankruptcy court in March. The crypto lender’s lawyers indicated that this may be the first of many potential auctions. 

BlockFi’s move to sell off its crypto mining business comes amid an upturn in the mining sector. After months of high power costs and increasing bitcoin hashrates, the crypto-mining industry finally saw an improvement this month. Data from Blockchain.com shows that crypto miners saw a 50% increase in revenue this month. The change in sentiment has prompted several crypto firms to sell off mining-related assets. This includes fellow crypto lender Celsius’ mining arm, which announced the sale of $1.3 million worth of mining equipment earlier this month.