BlockFi Raises Almost $5 Million By Selling Mining Assets

The sale of mining equipment and other physical assets by BlockFi, a crypto asset lending firm in bankruptcy proceedings, was permitted by a US bankruptcy court for $4.7 million. According to a report by The Block, BlockFi’s lawyer said that a portion of the assets would be sold to a company named US Farms after an auction in which there was a lot of interest in the actual equipment that would be disposed of.

According to the firm, there were five offers for the complete set of mining assets and seven bids for a part of the assets prior to the purchase decision. In November 2022, BlockFi filed for Chapter 11 bankruptcy in the United States Bankruptcy Court. A Chapter 11 bankruptcy is a corporate reorganization effort that minimizes debt while the company continues to function. To maximize the recovery of creditors’ assets, the property of a bankrupt corporation may be sold to a third party and divided among creditors. It is worth mentioning that the corporation gained permission to hold the aforementioned auction at the end of January.

Source :https://news.coincu.com/176033-blockfi-raises-almost-5m/