BlockFi, a crypto lending firm, is reportedly planning to sell off $160 million in loans backed by around 68,000 Bitcoin mining machines as part of its bankruptcy proceedings.

The firm filed for Chapter 11 bankruptcy in November 2022 due to significant exposure to a now-defunct crypto exchange.

Some of the loans have already defaulted and could be undercollateralized due to the decline in the price of Bitcoin mining equipment.

The last day for bidders to submit offers for the loans is January 24. The sale is likely part of efforts to pay off its creditors, of which the company has over 100,000.

The company also sold $239 million of its own cryptocurrency assets and warned 70% of its staff that they would lose their jobs at the time of its bankruptcy.