The court permitted the bankrupt cryptocurrency lender BlockFi to auction off its cryptocurrency mining equipment as part of the company’s continuous attempts to repay its debtors. BlockFi aims to maximize its profits by submitting its bids as early as possible to take advantage of the present market circumstances.
BlockFi was granted permission to sell its assets in an order issued on Jan. 30 in the US Bankruptcy Court for the District of New Jersey after announcing plans to sell equipment earlier. The ruling said the sale of the assets was “fair, reasonable and suitable given the circumstances.”
It is anticipated that there will be an increase in the number of offers submitted for the cryptocurrency lender’s crypto mining assets now that the court has given BlockFi the go-ahead.
The court agreed that selling the company’s assets is intended to maximize the amount of money that may be recovered and the company’s “realizable worth.”
The bids must be submitted by February
According to the requirements outlined in the document that Bloomberg reported, “all qualifying bids” must be sent to the parties named in the bidding processes by Feb. 20.
Potential bidders must submit a written proposal to participate in the bidding process. This proposal must be sent to each of the “co-counsel to the debtors.”
In the proposal, one needs to specify not only the planned purchase price but also the particular assets that the prospective bidder is interested in purchasing and the method by which they would fund the acquisition of those assets.
According to the newspaper, Francis Petrie, the attorney for BlockFi, said in court that the firm has already received interest from potential bidders for different assets and anticipates that more will follow in this vein.
BlockFi is looking to utilize the bull market
The court must receive the offers by March 2, and the representatives of the creditors have until March 16 to object to the sale of the assets to the eligible bidders.
The strict deadline that BlockFi has set is part of an effort to get bids as soon as possible to take advantage of the current market situation, which has seen most cryptocurrencies hold rallies after months of sideways price action.
As part of the company’s bankruptcy procedures, it was revealed on Jan. 24 that BlockFi had begun disposing of loans worth around 68,000 bitcoin mining equipment, which was guaranteed a total of $160 million.
The process of selling off the loans was initiated by BlockFi last year, and given the realities of the cryptocurrency market, some of the loans have already been in default.