Episode 11

General Market Overview:

• The episode kicked off discussing various market activities, including price increases and their impact on capital availability and rates.

• Notable points include the fixed demand for Bitcoin and the exceeding demand from ETFs, which is promising for long-term asset holders.

Price Forecasting and Strategies:

• Discussion moved into price forecasting and strategies, such as MicroStrategy's approach to treasury management through Bitcoin acquisition.

• Factors like the power law and resurgence of the stock-to-flow model were explored, indicating a bullish market dynamic.

Access to Liquidity and Wealth Accumulation:

• Emphasis was placed on the permissionless access to markets facilitated by digital currencies, particularly Bitcoin.

• Businesses and individuals are leveraging assets to accumulate wealth and gain liquidity through borrowing, which was highlighted as a revolutionary aspect of digital assets.

Insights from Customer Interactions:

• Insights were shared regarding businesses seeking solutions to leverage their existing crypto holdings for treasury management and growth acceleration.

• The importance of providing services for microtransactions and access to wealth generation was underscored.

Regulatory Considerations and Asset Confiscation:

• Speculation arose about potential regulatory scenarios, including asset confiscation akin to historical events with gold.

• The discussion touched on the implications for customers in such scenarios, highlighting the importance of loans as a safeguard.

Capital Investment for Growth:

• The company's primary focus is to continually secure capital for investing in talent, technology, and regulatory efforts, especially in various jurisdictions, to operate effectively in a 24/7 world.

• The company sees holding Bitcoin in its treasury as a necessity, not just for profit but for ethical business practices. Accumulating Bitcoin reserves serves as insurance to protect customers' interests and provides purchasing power for funding loans.

Regulatory Compliance and Expansion:

• As the company expands, it anticipates needing more regulatory licenses and increased capital reserves to comply with evolving regulations and to enter new markets, such as California.

California Regulatory Landscape:

• While awaiting regulatory decisions in California, the company remains committed to resolving issues and is actively engaging with regulatory bodies to ensure compliance.

Celsius Refinance:

• Regarding refinancing options, borrowers need to understand that selecting a third-party lender doesn't lock them into a specific choice. Flexibility exists, and borrowers can change their selection if needed by contacting Celsius directly.

Communication and Transparency:

• The company acknowledges challenges in communication due to the complex and dynamic nature of regulatory processes. They commit to providing updates and addressing individual concerns on a case-by-case basis.

Borrowing Products:

• Term Loans: Borrow against your collateral with flexible features.

• Authorized Partnership Agreement: Partner with SALT to integrate products/services and drive additional benefits.

• White Labeling and Embedded Lending: Customize and integrate SALT services into your own offerings.

• Treasury Management: Hold and manage treasury Bitcoin with governance and access to lines of credit.

Lending of Assets (LEND):

• Private Accredited Investors: Participate in U.S.-centric private investment offerings.

• Credit Facilities: Institutional lending arrangements for ongoing capital needs.

Upcoming Products:

• Direct Purchase of Crypto: Buy crypto directly through SALT for quick onboarding and dollar cost averaging.

• Additional Services: Potential future offerings including swaps or exchanges (further out).

Investment Opportunities:

• Strategic Investors: Opportunities for qualified purchasers or accredited investors interested in supporting SALT's growth.

Lending Rewards:

• Current interest rates range from 12% to 13% for USD bank transfers and stablecoins (USDC, USDT).

• Rates may decrease to 8% to 10% as more dollars enter the system.

• Bitcoin rates average around 1% to 2%, while Ethereum rates are slightly higher due to inflationary staking dynamics.

Future Roadmap:

• Working on introducing lines of credit and joint lend-borrow accounts.

• Aim to provide flexibility and comprehensive solutions for crypto users.

• Mission focuses on wealth preservation and management tools.

Addressing Concerns:

• Discussion around borrowers' concerns and the refinancing process.

• Advocacy for making collective noise to potentially influence decisions.

• Emphasis on maintaining communication and transparency with creditors.

Closing Remarks:

• Encouragement to stay engaged and vocal about concerns.

• Acknowledgment of the ongoing journey and commitment to addressing community needs.