Leading cryptocurrency lender SALT announced Thursday the completion of its fundraising to enable the firm to resume operations after halting its services, including deposits and withdrawals last year. The company, founded in 2016, was among the many crypto enterprises affected by the fall of FTX in November 2022.
SALT Raises $64 Million
The unfavorable market conditions and the FTX collapse greatly disarrayed the ranks of many firms in the industry. However, SALT plans to come back through its latest series A recapitalization to regain its position while continuing to provide value to the ecosystem.
The company secured $64 million by selling its preferred stocks to accredited investors in exchange for the conversion and cancelation of outstanding indebtedness. The recapitalization has bolstered the firm’s financial strength and improved its reserves.
According to the press release, the funding is part of its preparations to resume operations later this year if approved by authorities. The California Department of Financial Protection and Innovation (DFPI) suspended the company’s operational license last November after SALT paused operations.
“It is imperative that we return to full operations as soon as possible and allow our borrowers to access their funds and manage their loans. We have a number of new products and features waiting to be released that will bring transparency and optionality to the space,” said Shawn Owen, the founder and CEO of the company.
A Failed Acquisition
Before the company’s financial woes started, SALT was on the verge of being acquired by Bnk To The Future, an online investment bank.
The two firms signed an agreement in September 2022, which would have given Bnk To The Future an opportunity to purchase SALT at an undisclosed amount. However, the investment bank pulled out of the deal after SALT disclosed its exposure to the Sam Bankman-Fried crypto empire FTX.
With the deal terminated, the company is now working to restart operations. The firm’s CEO said SALT had embarked on a growth plan that would position it better in the coming years.
“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 said.
SALT is also planning to seek additional funding later this year to further support the development and launch of its upcoming products and services to strengthen its foothold in the industry.
According to an undisclosed investor, the company “has been an innovator in crypto debt and investment vehicles through both boom-and-bust cycles.
