BlockFi sells $160 million in loans backed by 68,000 mining rigs

As part of its bankruptcy proceedings, cryptocurrency lending firm BlockFi will sell $160 million worth of loans backed by about 68,000 bitcoin mining equipment, according to Bloomberg. Report On January 23rd.

Citing people familiar with the issue, Bloomberg indicated that the bidding process for the assets in question will end on January 24, 2023.

Since BlockFi entered bankruptcy, it has liquidated its loans to pay off more than 100,000 creditors. Also, in this regard, the lender drop Its workforce decreased by 70% while it sold $239 million of its virtual assets.

Remember, BlockFi’s recent liquidity struggles have yet to come to light FTX breakdown. The crash disrupted the atmosphere of the cryptocurrency market, affecting companies within its explosive radius.

Right now, the lender is struggling to keep its staff in the midst of bankruptcy proceedings. Through yesterday’s announcement, the company Requested The bankruptcy court will allow BlockFi to offer bonuses to high-profile employees, as without it it would be difficult to retain some of the top employees.

The bankrupt company argued that the loss of senior employees would add more financial constraints, exacerbating its inefficiencies.

Crypto miners struggles in 2022

Apart from its lending services, BlockFi is also known for its mining exploits. Conflicts within the mining business affected the company’s financial stability. Some of the loans backed by mining rigs have already defaulted since the company filed for bankruptcy.

Crypto miners Struggling to stay in business With BTC declining for most of 2022. Likewise, the rise in energy prices is causing more losses for miners, driving the value of mining facilities up 80% for the year.

As a result of the miners’ struggles in the past year, the companies love argo Blockchain and Celsius They had to sell some of their mining facilities. Although a popular astrologer, Core Scientific has Presented For Chapter 11 bankruptcy protection.

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