HODL Finance, the European crypto-backed loans company, has issued a Letter of intent to acquire an American competitor SALT Lending. Shareholders of HODL Finance have already formed a sufficient equity capital needed to complete the transaction.
HODL Finance intents to acquire all SALT Lending qualifying, outstanding loan receivables secured by their corresponding pledged cryptocurrency collateral. In this way, the investors and clients of SALT Lending would not be harmed by the possible collapse of the company. The deal would secure the continuity of their business in HODL Finance platform", Vytautas Zabulis, Managing Director and one of the shareholder's at HODL Finance say.
"SALT Lending had reportedly built up a loan portfolio of $40M backed by cryptocurrency as collateral since its operations began last year. In this respect, SALT Lending is a good target for investments to further expand our own client base. Although, any further moves will be considered after a thorough analysis and due diligence to secure the interests of our own shareholders", Vytautas Zabulis adds.
The offer by HODL Finance comes at the time of the challenges SALT Lending is experiencing following the unexpected departure of SALT’s founder and CEO, Sean Owen. Mr. Owen stepped down last week without proper explanation not only to the public, crypto-lending industry but even its own community.
"In the business of financial services, trust is everything. The presumable collapse of SALT Lending would harm not only the interests of the company's investors but the crypto-lending community as a whole. Our team, with years of experience in running various businesses in the field of finance - from fintech consumer lending company to the leading commercial bank in Central Europe, SEB, have both experience and capital to acquire the competitor in the coming months", underlines Mr. Zabulis.
Managing Director at HODL Finance adds that such a deal would maintain confidence in the crypto-lending industry.
HODL Finance, a crypto-backed loans company, established in 2018 by the shareholders and managers of the European peer-to-peer lending platform, Savy. Founded in 2014, Savy has over 30,000 clients in 33 Europeans countries.
See letter of intent by HODL Finance.
