The bear market in digital assets hasn’t ended with more exchanges and crypto funds likely to suffer for several quarters, Alan Lane, the Chief Executive of crypto-focused bank Silvergate said.
See related article: Wall Street seems to sense opportunity in distressed crypto markets
Fast facts
- Investors should not compare the current crypto price decline to previous slumps, given that digital assets are under macroeconomic pressures such as rising interest rates, Silvergate CEO Alan Lane said in an interview.
- Lane said the bank will keep increasing its Bitcoin lending, adding it is “some of the best lending we’ve ever done.”
- In May, Silvergate offered a US$205 million loan to Michael Saylor’s MicroStrategy to purchase more bitcoin.
- Lane said the recent crypto market turmoil vindicated Silvergate as it requires borrowers to provide more collateral than their loans compared to the market norm.
- Silvergate’s second-quarter net income rose 85% to US$38.6 million from $20.9 million in the year-ago quarter, according to its recent earnings report.
See related article: Michael Saylor, MicroStrategy stick to their guns on Bitcoin
