JAKARTA - BlockFi, a bankrupt crypto mining lending company, plans to sell loans related to the purchase of Bitcoin mining machines.
The company has about $160 million in loans backed by 68,000 Bitcoin mining machines to sell. According to a Bloomberg report on January 24, the New Jersey-based company started the bidding process for the loan last year.
However, some of these loans have defaulted and are undersuggested due to a drop in the price of BTC mining hardware. BlockFi filed for bankruptcy chapter 11 at the end of November following the collapse of FTX.
The crypto mining industry had a bad year in 2022, with Bitcoin miners being hit by high hash rates and intense competition, as well as rising energy prices as well as falling Bitcoin prices. Crypto lenders such as BlockFi, which have penetrated Bitcoin mining to increase their digital asset treasury, were also affected by this condition.
According to a Bloomberg report, nearly $4 billion has been collected through this loan since the latest crypto increase. Other major lenders to crypto mining companies including the New York Digital Investment Group (NYDIG), Celsius Network, Galaxy Digital, and Digital Currency Group's (DCG) Foundry.
However, with difficult market conditions, some of these companies were forced to sell depressed assets, such as Bitcoin mining hardware.
Crypto asset manager Grayscale is setting up funds with Foundry to invest in BTC mining hardware to leverage this depressed asset market. This shows that although the crypto mining industry is experiencing difficulties, there is an opportunity for investors who dare to take risks.
On January 23, BlockFi urged the court to approve bonus payments as the company struggles to keep staff. According to the filing, Chief People Officer Megan Crowell said that while it is currently a very volatile time in the digital asset industry, opportunities for participants elsewhere have not been closed.
He added that efforts to get talent remain active and urged approval of the retention program to prevent unsustainable pressure on the company. Crowell's proposal will offer a staff bonus of 20-50 percent of their salary if they stay in the company on January 31.
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