The Bankruptcy Court approved the sale of $4.7 million worth of mining equipment and other physical assets to the BlockFi crypto-lending platform. This is reported The Block.
The counterparty in the deal will be a structure called US Farms.
Lawyers for the company going through bankruptcy said the agreement was the result of a “very competitive” auction. Buyers submitted five bids to purchase a full package of mining-related assets. Another seven participants indicated their interest in a part of the property being sold.
In 2022, BlockFi, along with NYDIG, Celsius Network, Foundry Networks and Babel Finance, was among the most active lenders secured by cryptocurrency mining equipment. The total volume of these loans, which were under threat due to the market fall, was estimated at $4 billion in June.
In February 2023, Bitfarms repaid the balance of a $21 million loan from BlockFi with a $7.75 million payment. In January, the mining company put a condition on the lender, threatening to default on the loan. At that time, the cost of the installations providing it was $ 5 million.
According to Hashrate Index, ASIC miner prices have been declining throughout 2022. But since the beginning of 2023, against the backdrop of a rally, bitcoin has recovered slightly. Compared to January, the cost of the latest generation devices has increased from ~$14 per J/TH to $15.
Recall that in January, the “daughter” of another crypto-creditor in the process of bankruptcy, Celsius Network, sold 2,687 new MicroBT M30S devices worth $1.3 million.
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