Bankrottes Blockfi, around $ 160 million in Bitcoin for sale mining hardware loan: report
Bankrottes Blockfi, around $ 160 million in Bitcoin for sale mining hardware loan: report
The competitive crypto company has around $ 160 million of loans that are secured by 68,000 Bitcoin mining rigs that have to sell.
The company based in New Jersey launched the bidding process for the loans in the past year, according to a Bloomberg report on January 24, in which "people familiar with the matter".
They added that some of these loans have already failed and were underground due to the drop in prices for BTC mining hardware.
Blockfi reported bankruptcy after the collapse of FTX in accordance with Chapter 11.
Blockfi sells in need of assets
crypto loan such as Blockfi also ventured into Bitcoin mining to increase their treasury for digital assets. According to Bloomberg, almost $ 4 billion has been raised by these loans since the last crypto bull run.
Other important lenders for crypto mining companies are the New York Digital Investment Group (Nydig), Celsius Network, Galaxy Digital and the Foundry of the Digital Currency Group (DCG).
However,2022 was a terrible year for the crypto mining industry. BTC-Miner were hit by a triple stroke of high hash rates and competition, rising energy prices and collapsing Bitcoin prices.
There is now a market for such necessarily assets from bankruptcy crypto creditors and battered mining companies. The crypto asset manager Grayscale set up a fund with Foundry to invest in BTC mining hardware and benefit from this needy asset market.
On January 23, Blockfi asked the court to approved the payment of bonuses because the company is struggling to keep employees. According to the file, Chief People Officer Megan Crowell said: "Despite an incredibly turbulent time in the digital asset industry, the possibilities for participants have not dried out elsewhere."
she added that the "war for talent remains active" and pushed for the approval of a binding program to prevent "not sustainable" pressure on the company.
crowell's proposal provides for employee bonuses of 20-50 % of their salary if they stay in the company by January 31st.
outlook on the cryptom market
digital assets are back in the green during the Asian trading session on Tuesday morning. Total capitalization rose by 1.3 % to $ 1.09 trillion on this day.
The markets have recovered 33 % since their cycle low of $ 820 billion.
Bitcoin had made another 1.7 % to $ 23,139, but Ethereum remained unchanged that day and stayed at $ 1,644. The old coins, which developed well at the time of writing this article, included XRP, Dot, Avax and Ldo.
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