February 24, 2024
London, UK

Silvergate Capital (SI) Slumps 43% on Massive Withdrawals

SI Silvergate Capital

Silvergate Capital (SI) stocks plunge 40% after huge client withdrawals were revealed in the Q4 preliminary metrics results.

Total deposits from digital asset customers declined to $3.8 billion from $11.9 billion on September 30 a decline of 68%.

Average deposits from digital asset customers dropped to $7.3 billion during the Q4 of 2022, compared to $12.0 billion during the Q3 of 2022. The high was at $11.9 billion and the low at $3.5 billion during the current quarter.

As of December 31, 2022, almost $150 million of Silvergate’s deposits were from customers that have filed for bankruptcy.

As of December 31, 2022, Silvergate held total cash and cash equivalents of approximately $4.6 billion, which is in excess of deposits from digital asset customers.

The withdrawals followed the FTX crypto exchange collapse.

In a move to raise cash in the last three months, Silvergate sold $5.2 billion of debt securities, for a loss of $718 million.

The company has cut 40% of its staff or 200 employees.

Silvergate Capital has cancelled the plans for a digital currency and has written off $196 million related to its acquisition of Diem Association from Meta Platforms (META).

Silvergate Capital (SI) stock

Silvergate Capital stock hits its lowest level since October 2020 at $12.22. The market capitalization now stands at $694 million. The 52-week trading range is between $12.22 and $162.65.

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