Revenue at the company fell from $80 million to $20 million during the bear market, a 75% decline. But one business line is bucking the trend: over-the-counter lending now has $260 million outstanding and is the fastest-growing segment, with a target of $1 billion by year-end.
Why revenue cratered
The bear market hit the firm's core operations hard. Revenue dropped from $80 million to $20 million, a loss of $60 million. The company did not specify which products or services were most affected, but the decline reflects the broader downturn in digital asset markets that has squeezed trading volumes and lending margins across the industry.
OTC lending takes off
While the rest of the business shrank, OTC lending expanded. The company now has $260 million outstanding in over-the-counter loans, making it the fastest-growing line. The firm is targeting $1 billion in outstanding OTC loans by the end of the year. That would represent a nearly fourfold increase from current levels.
OTC lending typically involves large, private transactions between institutional counterparties, often secured by collateral. The growth suggests that even in a bear market, there is demand for bespoke financing arrangements that aren't available on public exchanges.
Can the target be met?
Reaching $1 billion by year-end would require a significant acceleration. The company did not disclose how much of the current $260 million was originated in recent months, nor did it provide a timeline for hitting the target beyond the end of the year. The firm also did not say whether the growth in OTC lending would be enough to offset the revenue decline from other areas.
The company's overall financial health remains unclear. With revenue down 75%, the OTC lending business would need to generate substantial fees or interest income to make up for the lost revenue. The firm did not provide profit or loss figures for the lending line.
What happens next? The company is betting on OTC lending to drive a turnaround. Whether it can scale that business fast enough to matter — and whether the broader market cooperates — are the open questions.
