Bankrupt crypto loan company BlockFi will sell Bitcoin mining machine-backed loans.
BlockFi is among the few companies that have filed for bankruptcy due to the collapse of major crypto firms like FTX, Three Arrows Capital, and Terra Luna in the past year. Crypto loan firm BlockFi has been prominent as a major financier through computer hardware-backed loans for Bitcoin miners battered by low Bitcoin (BTC) prices and rising electricity costs. Now he plans to sell these loans for himself.
BlockFi Plans to Sell Equipment Backed Loans
According to the news in Bloomberg, BlockFi plans to sell approximately $160 million in loans backed by about 68,000 Bitcoin mining machines.
The people who relayed the information said that the Jersey City, New Jersey-based company, which applied for protection from creditors in November, started the process of bidding for the loans last year. According to individuals, some of the loans have already defaulted and the collateral appears to be insufficient given the current prices of Bitcoin mining equipment.
Other major lenders to crypto mining companies include New York Digital Investment Group, Celsius Network, Galaxy Digital, and Digital Currency Group’s Foundry. Celsius and Digital Currency Group, like BlockFi, have been grappling with financial problems for a long time.
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