• SALT Lending recently raised $64.4 million in a Series A funding round.
• The company is hoping to use the capital to expand its operations and rebuild its balance sheet.
• This is following a difficult period of financial difficulty, including the crash of FTX and a series of bankruptcies among crypto lending platforms.
SALT Lending Closes $64.4 Million Series A Funding Round
Crypto lending platform SALT Lending has closed a $64.4 million Series A funding round through a share sale to accredited investors. The firm is focusing on expansion and will seek additional funding in a second funding round later this year.
Recovery from FTX Contagion
In the aftermath of the crypto winter and the collapse of FTX, several cryptocurrency lenders have gone bankrupt, including Genesis, BlockFi, Voyageur Digital, and Celsius Network. However, SALT Lending is trying to bounce back from the downturn by replenishing capital reserves and strengthening its balance sheet with this new financing round.
November 2022 Pause on Withdrawals & Deposits
In November 2022, SALT Lending announced a „pause“ on withdrawals and deposits on its lending platform following the FTX crash as it had served as a source of liquidity for their operations which caused some controversy online and led to them losing their California lending license as well as an agreement to sell themselves off to BnkToTheFuture.
Rejuvenation Plans
Founder and interim CEO Shawn Owen believes that despite facing an unprecedented situation they are now positioned for even greater success moving forward with plans for new products that offer transparency and optionality in the lending space as well as plans for further fundraising later this year in order to fund these products‘ roadmap.
Conclusion:
Despite difficulties such as going bankrupt or losing agreements due to the FTX crash, SALT Lending is determined to bounce back stronger than ever with new products that bring increased transparency into cryptocurrency lending while seeking additional funding later this year in order fund their product roadmap.