BlockFi Has Received Approval To Sell $4.7 Million In Mining Rigs By U.S. Bankruptcy Court

Key Points:

• BlockFi, a defunct cryptocurrency lender that owns several mining rigs, is selling part of its equipment. 
• The clearance came from the United States Bankruptcy Court in New Jersey, which is handling BlockFi’s case with the sale of approximately 6,400 mining equipment to U.S. Farms & Mining Opportunity Fund for $4.7 million.

BlockFi, a defunct cryptocurrency lender that owns several mining rigs, is selling part of its equipment. 

According to court records filed on Friday, the federal bankruptcy court overseeing BlockFi‘s case has allowed the sale of approximately 6,400 mining machines to U.S. Farms & Mining Opportunity Fund for $4.7 million. Based on a prior filing, the majority of the 6,376 mining rigs sold by BlockFi to U.S. Farms & Mining are Bitmain Antminers. They are located in Texas, Georgia, Kentucky, and North Dakota, but the corporation also has some in Norway. BlockFi has acquired around 400 of the computers through foreclosure.

The firm filed for bankruptcy in late November 2022 in the United States Bankruptcy Court for the District of New Jersey, owing in part to the fallout from the collapse of crypto exchange FTX. BlockFi conducted several self-mining activities in addition to financing bitcoin miners. The firm announced its intention to file for Chapter 11 bankruptcy protection, suggesting that it wanted to restructure while maintaining operations in the meanwhile. BlockFi has around $257 million in cash in hand, according to a press release. A Bermuda-based affiliate has also filed for liquidation, which is a similar procedure.

The firm management estimate the firm has more than 100,000 creditors, according to the petition, and ticked off the ranges. Executives estimate the company’s assets and liabilities to be worth between $1 billion and $10 billion. West Realm Shires Inc., the formal name for FTX US, has a $275 million unsecured claim against the corporation, and the Securities and Exchange Commission (SEC) has a $30 million unsecured claim. The identities of the bulk of the other top 50 creditors were withheld.

Ankura Trust Company is BlockFi’s largest creditor, which the lender appears to have engaged in February and now has a $730 million unsecured claim.

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