Crypto lender SALT has successfully closed a Series A funding round in the amount of $64.4 million. This occurred through a share sale made to accredited investors. The previous attempt had fallen through because of the collapse of the centralized crypto exchange FTX. The aim and intention of the company is to effectively utilize the funding amount in building new products, with the focus remaining on the overall growth plan.
From the official papers filed with the U.S. Securities and Exchange Commission, it appears that the company parted with its shares, handing them over to the present borrowers and lenders. In return, his balance of the debt was duly written off.
In November 2022, it happened that the online investment platform, Bnk To The Future, canceled its plans for the acquisition of SALT after being made to understand that the company had notified its customers that, for a while, all forms of deposits, as well as withdrawals, would be put on hold because of a certain exposure to FTX. Now, however, with the help of the present funding, all activities that had been put on hold will be resumed.
In 2016, SALT became an officially recognized business. It is headquartered in Denver. The main purpose of the organization is to offer blockchain-supported loans in which the borrowers voluntarily provide cryptocurrency as collateral. Other cryptocurrency lenders, including BlockFi, Celsius Network, and several others, completely stopped operating as a result of the collapse of the cryptocurrency market.
According to Shawn Owen, the founder and CEO of SALT, the year 2022 was indeed the most unfavorable for all of them. Some of them happened to have done worse than the others, like Terraform Labs, Voyager Digital, and many others. However, in his opinion, most of the storm has been weathered by the company more or less, and the future is now ahead and looking a lot brighter.
He also mentioned in his conversation with CoinDesk that he had seen a tremendous boost in his overall fortunes in the year 2021, with the terrible fall occurring the next year. It was truly a terrible period for cryptocurrency lenders. At this point, he made the difficult decision to do nothing more than sit back and, in a sense, shut down his business and all associated operations until the situation improved. Now, at present, his company’s whole focus will be on regaining the confidence of all parties involved and taking all necessary preventive measures.