BlockFi Will Benefit From Bitcoin Mining Equipment

Bankrupt crypto loan company BlockFi will sell Bitcoin mining machine-backed loans.

Bankrupt crypto loan company BlockFiwill sell Bitcoin mining machine backed loans.

BlockFi last year FTX, three arrows capitaland terra luna It is among the few companies that have filed for bankruptcy due to the collapse of major crypto firms such as 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 BlockFiplans to sell approximately $160 million in loans backed by approximately 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 organizations lending to crypto mining companies include New York Digital Investment Group, Celsius Network, Galaxy Digitaland Digital Currency Group’s Foundry is located. Celsius and Digital Currency Group, like BlockFi, have been grappling with financial problems for a long time.