The comment comes after Silvergate reported earnings that outdid estimates from experts, sending its shares skyrocketing up by 13%.
Silvergate Capital (SI) is now willing to capitalize on more opportunities to expand its program on lending Bitcoin, explained CEO Alan Lane in the company’s post-earnings meeting hall.
- In March 2022, Silvergate processed a USD 205 million Bitcoin-backed loan to MicroStrategy (MSTR), an app development company that is led by Michael Saylor, one of the top Bitcoin enthusiasts. Now, the bank is looking forward to doing more such loans. Lane was quoted saying that this is the perfect time to be a Bitcoin banker.
- The loan to Microstrategy was provided through the Silvergate Exchange Network Leverage Program, which is a platform developed to help make loans against BTC held on the company’s balance sheet.
- Now, Silvergate is planning to also unveil a stablecoin this year, although they have not given a specific timeline. The management said that it is figuring out how the reserves for the coin will be managed.
- Silvergae announced in January that it was buying the technology plus other assets from Diem, a stablecoin from Meta (previously Facebook), and that was initially announced as Libra in 2019. Diem is a permissioned blockchain-based stablecoin payment model, which Silvergate wants to use to increase its presence in the crypto space.
- Silvergate shares rose by 12.6% when the company announced per-share earnings for the first quarter. This was way past the analysts’ initial estimates.
smriti
Passionate about innovative technologies that make the world a better place, Smriti has been a part of the hi growth story since Day 1!