SALT Lending converts $64M debt – plans to restart in Q1 2023 SALT Lending converts $64M debt – plans to restart in Q1 2023
SALT Lending is focusing on growth and will seek to raise additional funds in a second funding round later this year.
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Updated: Feb. 9, 2023 at 8:22 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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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Author 
Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
BlockFi
BlockFi is a defunct cryptocurrency lender company which is currently in bankruptcy proceedings.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.