Silvergate Crypto News: Fintech and crypto focused bank Silvergate Capital on Thursday expressed confidence in the crypto industry’s future. The comments came at the back of the flurry of withdrawals from the bank when the FTX collapse unfolded in November 2022. The bank said its mission in the digital assets industry has not changed. In an early sneak peak of the company’s fourth quarter results, it said there was huge drop in crypto related deposits.
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Crypto Deposits Plunge
In the last quarter, deposits associated with cryptocurrencies dropped by a whopping 68%, the bank said. According to a Wall Street Journal report, Silvergate has more cash in hand than the remaining deposits. However, there was a spike in daily average volume at the bank. The bank had $4.60 billion in cash while it had deposits worth $3.80 billion during the quarter. A statement from the bank said,
“While Silvergate is taking decisive action to navigate the current environment, its mission has not changed. Silvergate believes in the digital asset industry.”
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There was fear and uncertainty around Silvergate’s stability after crypto lender BlockFi filed for bankruptcy following FTX meltdown. With news of exposure to the lending company, Silvergate stock price went down after the bankruptcy announcement. At the time, the bank said it had minimal exposure to BlockFi. The stakes were considered to be high for the bank given that around 90% of its deposits are related to crypto industry.
In this context, the Silvergate Capital stock price went down heavily in pre-market hours. As of writing, the Silvergate stock price is down by around 29%, losing around $6 in value.
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