Bankrupt Crypto Lender BlockFi Given Go-Ahead for Sale of $4.7M of Mining Rigs
The approval came from the U.S. Bankruptcy Court in New Jersey, which is overseeing BlockFi's case.
Mar 24, 2023 at 5:39 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/NWJBPJVJKVB53OXLVSFFXPV62E.jpg)
BlockFi, a bankrupt crypto lender that owns some mining rigs, is selling some of its machines. (Eliza Gkritsi/CoinDesk)
The federal bankruptcy court administering the case of BlockFi has approved the sale of nearly 6,400 mining rigs for $4.7 million to U.S. Farms & Mining Opportunity Fund, according to court documents filed on Friday.
BlockFi filed for bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey in late November 2022, in part because of the ripple effects from the collapse of crypto exchange FTX. In addition to financing bitcoin miners, BlockFi also had some self-mining operations.
The majority of the 6,376 mining rigs BlockFi sold to U.S. Farms & Mining are Bitmain Antminers, according to a previous filing. They are spread across the U.S. in Texas, Georgia, Kentucky and North Dakota, although the company also has some in Norway. About 400 of the machines had come into BlockFi's possession through foreclosure.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/www.coindesk.com/resizer/r4hCNh4zR8o4AxiOYIgV0l2Wigc=/arc-photo-coindesk/arc2-prod/public/QPY362MKDVA77CB4EHZRXW2KZM.jpeg)
Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.