SALT Lending Raises $64.4 Million To Restart Operations
Recently, SALT Lending received funds to restructure its finances and resume operations. By encouraging transparency and creating a substantial financial reserve, the company hopes to regain market trust and confidence.
SALT Lending Obtains Series A Funding of $64.4 Million
Accredited investors have contributed $64.4 million to SALT Lending’s Series A investment round. The investment round was necessary due FTX’s bankruptcy caused the planned sale to Bnk to the Future to falter. According to a press release draft provided by CoinDesk, the funds raised would be put to use for expanding the business and creating new products.
With the addition of this significant funding, SALT was able to increase its balance sheet and capital reserves and regain its financial stability. By the start of Q1 of this year, SALT hopes to restart entire operations, subject to regulatory approval.
A group of Bitcoin enthusiasts established SALT Lending in 2016. The company developed a financial application for the blockchain that offers lending services. The platform provides personal and commercial loans and lets users use their cryptocurrency holdings as security for borrowing.
Crisis In Crypto Lending Over The Past Year
Customers of SALT Lending were informed that withdrawals were no longer being processed on the platform momentarily in November of the previous year. Shawn Owen, CEO of SALT, reportedly gave the notice in a letter. The letter claims that SALT was impacted by FTX’s failure but could not specify the magnitude of the impact.
Within a year, numerous top cryptocurrency lending companies had significant difficulties. Along with Voyager Digital, Celsius, and BlockFi, Genesis was the most recent company to go out of business or file for bankruptcy last week.
SALT Will Boost Confidence in the Crypto Lending Market
The corporation is currently nearing the conclusion of an extrajudicial restructuring procedure that will allow it to carry out regular business operations. It is anticipated that a formal declaration about this issue will be made soon.
To restore the trust of wary customers in the crypto lending industry, according to Owen, it is essential to encourage transparency and exhibit a strong reserve. He continued by saying that his company is looking for more funds to create a surplus.
In response to a market that is wary of ambiguity or miscommunications, the company has become more open and transparent. According to Owen, there is uncertainty in the market, and individuals are feeling deceived or misinformed about what is going on.
