Crypto Lender Salt Makes Comeback with $64.4 Million Funding
• Salt Lending, a crypto lender, announced on Feb. 8 that it had closed a $64.4 million financing round to strengthen its balance sheet and replenish its capital reserves.
• The company had previously frozen withdrawals and deposits to its lending platform in mid-November due to the FTX crash.
• Salt is currently working with California regulators to restore their suspended lending license.
Crypto Lender Salt Makes Comeback
Salt Lending, one of the world’s first cryptocurrency lenders, announced on Feb. 8 that it had closed a $64.4 million financing round that will strengthen its balance sheet and replenish its capital reserves. Accredited investors will receive shares of the company’s preferred stock in return for their funding, which is still subject to approval by regulatory authorities but should allow the company to return to full operation in the first quarter of 2023.
Background On Salt’s Pause
Salt Lending froze withdrawals and deposits to its lending platform in mid-November, shortly after the FTX crash like some other crypto firms who used the Bahamas-based FTX as a source of liquidity for their operations. Though they never filed for bankruptcy, this “pause” set off a mini tempest on social media and led to their California lending license being suspended.
Salt Working To Restore California License
Interim CEO Shawn Owen has stated that Salt is doing everything they can to educate regulators on how their business model works and stay transparent with them while attempting to get their license restored. However, there is no guarantee as regulatory authorities have discretion over whether or not they ultimately decide to restore it or not at this point in time.
Impact Of Perfect Winter Storm On Crypto Market
The perfect winter storm of 2022 has decimated many major players in the cryptocurrency market such as Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, FTX and BlockFi – none were immune including Salt Lending itself though they are determined emerge stronger than ever from this situation according to Owen himself.
With this new Series A recapitalization effort providing them with additional funds for further growth and development – along with hopefully restoring their California lending license – all signs point towards Salt making an eventual comeback from these turbulent events within the crypto market space just like so many other companies have been able do prior in similar situations throughout history .