The bankruptcy court approved the sale of mining equipment and other physical assets valued at $4.7 million of the crypto-lending platform BlockFi. The Block reports.
The counterparty to the deal will be an entity named US Farms.
Lawyers for the the company in bankruptcy proceedings noted that the agreement was the result of a ‘very competitive’ auction. Buyers submitted five bids to acquire the full package of mining-related assets. Seven more participants expressed interest in part of the assets on offer.
In 2022, BlockFi, together with NYDIG, Celsius Network, Foundry Networks and Babel Finance, was among the creditors most active in loans secured by mining equipment for cryptocurrency mining. The total of these loans, which were at risk due to the market slump, was estimated at $4 billion in June.
In February 2023, Bitfarms repaid the remaining BlockFi loan of $21 million with a payment of $7.75 million. In January, the mining company presented the lender with a condition, threatening to declare default on the loan. At that time, the value of the collateral installations was $5 million.
According to Hashrate Index, prices for ASIC miners fell throughout 2022. But since the start of 2023, amid the Bitcoin rally, they have somewhat recovered. Compared with January, the price of latest-generation devices rose from about $14 per J/TH to $15.
In January, a subsidiary of another crypto lender in bankruptcy proceedings — Celsius Network — sold 2,687 new MicroBT M30S devices for $1.3 million.