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.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).