Sunday, April 2, 2023
Bitcoin - Altcoin News
No Result
View All Result
  • Login
No Result
View All Result
Bitcoin News
No Result
View All Result
Home News

Just-In: This Crypto-Focused Bank Lost $1 Billion Due To FTX Collapse

news by news
January 17, 2023
in News, United States
0
Just-In: This Crypto-Focused Bank Lost $1 Billion Due To FTX Collapse
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit

Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why

silvergate loss

Silvergate Capital, a bank that specializes in virtual currencies, reported a loss of $1.05 billion in the fourth quarter of 2022; although at the same time a year earlier, it had reported a profit of $18.4 million. As a result of a string of high-profile bankruptcies that shook the crypto industry and prompted a deluge of withdrawals at the bank, Silvergate lost $33.16 on a per-share basis, compared to a profit of 66 cents a year prior.

Silvergate’s Net Loss At $1 Billion

The California-based bank reported that it suffered large losses in deposits over the course of the quarter and that it has taken measures to shore up its liquidity, including laying off almost 40% of its workforce. According to Silvergate’s official statement, the company anticipates a prolonged period of reduced deposits across the broader crypto market.

Silvergate CEO Alan Lane was quoted as saying:

While we are taking decisive actions to navigate the current environment, our mission has not changed. We believe in the digital asset industry. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.

Read More: Top 10 DeFi Lending Platforms In 2023

According to Silvergate’s report, the company sold $5.2 billion worth of debt securities during the quarter and reported a loss of $751.4 million on the transaction. In addition to this, it reported an impairment charge of 134.5 million dollars related to the 1.7 billion dollars worth of securities that it plans to sell during the current quarter in order to lower its borrowings.

The FTX Contagion

The collapse of the cryptocurrency exchange FTX precipitated a run on Silvergate Capital Corp., which required the bank to sell assets at a considerable loss in order to satisfy the approximately $8.1 billion in withdrawals. As a result of the rush, the bank was obliged to liquidate assets. And, similar to others, Silvergate was shaken by the contagion caused by the failure of high-profile cryptocurrency firms in 2022, leading to a large decline in the industry, that reached its lowest in November.

Even with the unfavorable Q4 statistics, Silvergate’s (SI) stock is currently trading at a pre-market valuation of $14, which is a whopping 5.8% increase in comparison to its 40% one-day decline, witnessed during the first week of January.

Also Read: Why Did This Crypto Suddenly Surge 300% In Trading Volume Today?

The post Just-In: This Crypto-Focused Bank Lost $1 Billion Due To FTX Collapse appeared first on CoinGape.

Related Posts

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit
24/7 Cryptocurrency News

Breaking: Binance, CZ And Three Top Crypto Influencers Slapped With $1 Billion Lawsuit

April 1, 2023
Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why
24/7 Cryptocurrency News

Elon Musk’s SpaceX To Fly 62 Bitcoin To The Moon? Here’s Why

April 1, 2023
Celsius Releases Reorganization Strategy; Finally Some Hope For Retail Customers?
24/7 Cryptocurrency News

Celsius Releases Reorganization Strategy; Finally Some Hope For Retail Customers?

April 1, 2023
Bitcoin Trades Above $28K Despite Fall Of Bittrex U.S.
24/7 Cryptocurrency News

Bitcoin Trades Above $28K Despite Fall Of Bittrex U.S.

April 1, 2023
Breaking: Binance Burns 1.6 Billion Terra Luna Classic Tokens, LUNC Price Jumps 3%
24/7 Cryptocurrency News

Breaking: Binance Burns 1.6 Billion Terra Luna Classic Tokens, LUNC Price Jumps 3%

April 1, 2023
XRP Lawyer States Best And Worst Outcomes In US SEC Vs Ripple Lawsuit
24/7 Cryptocurrency News

XRP Lawyer States Best And Worst Outcomes In US SEC Vs Ripple Lawsuit

April 1, 2023
Next Post
European Union Postpones Its Final Vote On MiCA Regulation; Here’s Why

European Union Postpones Its Final Vote On MiCA Regulation; Here’s Why

POPULAR NEWS

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

Bitcoin Price Prediction: On-Chain Data And Analysts Predict More Upside For BTC

December 7, 2022
Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

Crypto Prices Today: Huobi Token, Ethereum, Dogecoin Is Up; Solana Takes A Dip

December 7, 2022
Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

Donald Trump’s NFT Trading Cards Pump 350% In Value Upon Launch

December 17, 2022
Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

Bitcoin Price Today: BTC Rises By Nearly 2% While BlockFi Files For Bankruptcy

December 7, 2022
Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

Breaking: “Guilty” FTX Executive Will Now Cooperate Against SBF In Probe

February 28, 2023

EDITOR'S PICK

FTX News: US DOJ Proposes Bail Restrictions For Sam Bankman-Fried

FTX News: US DOJ Proposes Bail Restrictions For Sam Bankman-Fried

March 4, 2023
Bitcoin Price Today: BTC Rise By 1.81%, Reaches Near The 25k Mark

Bitcoin Price Today: BTC Rise By 1.81%, Reaches Near The 25k Mark

February 21, 2023
Are Whales Dumping XRP? Here’s What Data Suggests

Are Whales Dumping XRP? Here’s What Data Suggests

January 27, 2023
Breaking: US Fed’s Michael Barr Says Banks Should Notify Crypto Activity

Breaking: US Fed’s Michael Barr Says Banks Should Notify Crypto Activity

March 9, 2023
Bitcoin - Altcoin News

© 2022 coingger.com

Navigate Site

  • Europe
  • Exchange
  • Elon Musk
  • ETH Price
  • crypto Tax U.S.
  • CZ
  • Crypto Miners
  • BTC Price
  • ChatGPT
  • China crypto
  • Coingecko
  • Binance Smart Chain
  • Bitcoin $100K
  • Airdrop

Follow Us

No Result
View All Result
  • Homepages
    • Home Page 1

© 2022 coingger.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In