Bankrupt crypto lender BlockFi has been granted court approval to sell its crypto mining equipment as part of its ongoing efforts to pay off its debts.
A court ruling filed on January 30 in the United States Bankruptcy Court for the District of New Jersey granted approval for BlockFi to sell the assets, saying it was “fair, reasonable and appropriate under the circumstances.”
The court recognized that the asset sale was designed to maximize the recovery and “realizable value” of the company.
With the court giving the green light to BlockFi, more bids will now be launched for the lender’s crypto mining assets.
The document states that “all qualified bids” must be sent to the parties specified in the bidding procedure by February 20.
The offer must be submitted to the court by March 2 and the creditor’s representative has until March 16 to object to the sale of the asset to a qualified bidder.
To participate in the bidding process, prospective bidders must submit a written proposal to each “co-counsel for debt.”
The proposal must include the proposed purchase price as well as the specific assets that the potential bidder will acquire and how the assets will be financed.
According to a January 31 report by Bloomberg, BlockFi’s tight deadline is an attempt to get offers as quickly as possible in order to make the most of the current market conditions, which have seen most cryptocurrencies rally after months of sideways price action.
The report said BlockFi’s lawyer, Francis Petrie, told the court that the company has received interest from bidders for various assets and expects more.
related: Crypto Biz: A look at BlockFi’s secret finances (not good)
On January 24, it was reported that BlockFi had sold $160 million in loans backed by approximately 68,000 Bitcoin (BTC) mining machines as part of bankruptcy proceedings.
BlockFi started the process of selling loans last year, with some already failing due to the state of the crypto market.