April 2, 2023
11 °C 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.

Previous Article

Microsoft (MSFT) Analysts Forecasts and Price Targets

Next Article

Coinbase (COIN) Price Target and Analysts Forecasts

You might be interested in …

How Markets Performed in 2022

How Markets Performed in 2022

A tough year for investors across all asset classes and around the globe was 2022 as negative returns prevailed. Persisting inflation was the main theme globally which pushed all major central banks to aggressive rate hikes

MSFT Microsoft

Microsoft (MSFT) Q2 2023 Earnings

Microsoft reported the second fiscal quarter 2023 financial results after the market close. EPS beat the estimates but revenue came below expectations. Here are the key points

GOOGL Alphabet

Alphabet Q3 Earnings Disappoint

Alphabet (GOOGL) delivered a disappointing third-quarter earnings report. The earnings per share came at $1.06 well below the expectations of $1.25