Crypto lender BlockFi is seeking to promote $160 million in bitcoin mining machine-backed loans amid its chapter course of.
The bidding began final yr and a number of the loans could also be under-collateralized because of the decline in machine costs, unnamed sources instructed Bloomberg.
The value of mining rigs fell greater than 80% over the course of final yr because the decline in bitcoin costs and the spike in energy prices squeezed mining margins.
BlockFi was a significant lender within the mining sector, though mining solely accounts for a minority of the agency’s enterprise, as its Chief Danger Officer Yuri Mushkin instructed The Block in October. It has not underwritten any new loans to miners because the spring of 2022, Mushkin mentioned.
Miners have been battling the most important participant, Core Scientific, submitting for Chapter 11 chapter in December. In the meantime, Argo Blockchain bought its flagship facility in Texas to Galaxy Digital for $65 million.