Silvergate CEO: Bitcoin Loans Show An Uptrend

Time Stamp: July 25, 2022 6:41 AM
Source Node: 1593080

Alan Lane, CEO of Silvergate Capital and former TradFi banker, predicts that some exchanges and crypto funds may continue to have tough times over the next few quarters. However, Lanes emphasized that a new catalyst is expected that will enable the markets to recover at some point.

Lane said that current crypto prices should not be compared to previous declines. According to Lane, digital assets must consider broader global economic issues, including rising interest rates and inflationary pressure.

Shares of major companies have suffered huge losses, but some are starting to recover. Silvergate shares fell 42% in 2022 but rose 33% last week. Shares of VanEck Digital Transformation, which makes a basket of various cryptocurrencies such as Coinbase and cryptocurrency mining company Marathon Digital (MARA), fell 675 in 2022. But last week it rose again by 15%.

Lane explained that Silvergate did not fall into the traps of the bear market by not following the FOMO news. Lane said in a statement:

“We try to continue working without breaking our line. We do not chase instant news in the market. We only focus on what we do well and solve problems for our customers.”

Despite the collapse of crypto-related financial institutions, Lane announced they would continue using Bitcoin for their lending program.

 Silvergate gave MicroStrategy a $205 million term loan to buy more Bitcoins.

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