SALT Lending announced on Feb. 9 that it had converted around $64 million of its debt by issuing Series A preferred stock. The U.S.-based firm issued the stocks in exchange for converting and canceling its outstanding debts.
Several large crypto lenders crumpled last year — from Voyager Digital and Celsius to BlockFi and Genesis. However, SALT Lending — which was also struggling as it halted customer withdrawals shortly after the FTX meltdown — is making a comeback.
SALT Debt conversion
The debt conversion has strengthened the lender’s balance sheet and capital reserves, enabling it to avoid bankruptcy. SALT aims to return to “full operation” by this quarter. The company plans to embark on a path for growth.
Shawn Owen —founder and interim CEO of SALT — said:
“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.”
Owen added that SALT has new products and features awaiting release that will bring “transparency and optionality” to the lending space. Furthermore, Owen said that SALT would seek to raise more capital in another financing round this year to fund its product roadmap.
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