SALT Lending, a platform for crypto loans, has completed a $64.4 million Series A investment round by selling shares to approved buyers.
The company is concentrating on growth and will look for more money in a second investment round later this year. Genesis, BlockFi, Voyageur Digital, and Celsius Network are just a few of the cryptocurrency lenders that have filed for bankruptcy as a result of the crypto winter and the demise of FTX.
SALT Lending, one of the earliest cryptocurrency lenders globally, is attempting to recover from the slump, nevertheless. In order to refill its capital reserves and strengthen its balance sheet, the Denver-based loan company just concluded a $64.4 million fundraising round, according to reports on February 9.
In return for their investment, accredited investors will get preferred stock shares; however, regulatory approval for the Series A recapitalization is still awaited.
Following the FTX meltdown, SALT Lending declared a “pause” on withdrawals and deposits on its lending platform in November 2022. The company’s lending operations had used the liquidity provided by the Bahamas-based FTX.
The freeze sparked a social media mini-storm, and the company lost both a deal to sell the business to BnkToTheFuture and its California lending license. Despite these challenges, SALT Loan is adamant about overcoming them and reviving the cryptocurrency lending industry. SALT’s founder and acting CEO is Shawn Owen said:
“Despite facing an unprecedented situation and, frankly, an existential threat, we have embarked on a growth plan that we believe positions us for even greater success in the future.”
He continued by saying that the business has new features and products that will bring “transparency and optionality” to the lending industry. He also said that the business intends to raise more money this year in a new financing round to support its product roadmap.
