Friday, March 31, 2023
Bitcoin - Altcoin News
No Result
View All Result
  • Login
No Result
View All Result
Bitcoin News
No Result
View All Result
Home News Diem Project

Silvergate Ditches Its Digital Currency Plan; Writes Off $196 Mn In Crypto Acquisition

news by news
January 5, 2023
in Diem Project, Facebook Diem, News, United States
0
Silvergate Ditches Its Digital Currency Plan; Writes Off $196 Mn In Crypto Acquisition
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

READ ALSO

Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong

360 Million XRP On The Move Amid Ripple CEO’s Fresh Attack

silvergate

In February of last year, Silvergate officially announced the purchase of Diem Group, a Facebook-affiliated company along with its intellectual property & other technological assets necessary to operate the blockchain-based payment system. Facebook abandoned its digital currency project in 2021 in response to persistent pressure from political and regulatory authorities.

Silvergate’s Crypto Ambitions

Silvergate was Facebook’s first choice when choosing which company would issue the USD-based stablecoin. However, the Federal Reserve warned Silvergate & threatened to freeze the firm, which dealt an effective and fatal blow to Meta’s blockchain aspirations.

Read More: Silvergate Affirms Belief In Crypto Despite Q4 Withdrawal Plunge

However, the failure of the cryptocurrency exchange FTX triggered a run on Silvergate Capital Corp., which caused the bank to be forced to liquidate assets at a significant loss in order to cover the approximately $8.1 billion in withdrawals.

In a filing with the SEC, the firm was quoted as saying:

Given the significant changes in the digital asset industry landscape, this charge reflects the company’s belief that the launch of a blockchain-based payment solution by the company is no longer imminent,

Silvergate’s Dismal Q4 Figures

According to the bank’s early release of quarterly figures, cryptocurrency-related deposits dropped by 68% during the final quarter of 2022. In order to meet the withdrawals, the company liquidated the debt it held on its balance sheet. This also includes an impairment charge of $196 million relating to the buyout of Diem as well as the layoff of 200 employees at a total cost of $12 million in severance payments.

Silvergate further stated that they would continue to investigate new avenues for extracting value from these technological assets. The crypto-friendly bank acquired the software assets from Facebook, now Meta, with the intention of initially launching the cryptocurrency around the end of 2022.

As things stand, the Silvergate (SI) stock is currently trading at a pre-market valuation of $13.20, which is a whopping -40% decline from its last traded value of $21.95.

Also Read:What Are Music NFTs? How Are They Changing Music Industry?

The post Silvergate Ditches Its Digital Currency Plan; Writes Off $196 Mn In Crypto Acquisition appeared first on CoinGape.

Related Posts

Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong
24/7 Cryptocurrency News

Reasons Why Bitcoin (BTC) Price Is Falling Today While Altcoins Remains Strong

March 31, 2023
360 Million XRP On The Move Amid Ripple CEO’s Fresh Attack
24/7 Cryptocurrency News

360 Million XRP On The Move Amid Ripple CEO’s Fresh Attack

March 31, 2023
Top Whale Buys Billions Of Shiba Inu (SHIB) Tokens, Burn Rate Jumps Over 700%
24/7 Cryptocurrency News

Top Whale Buys Billions Of Shiba Inu (SHIB) Tokens, Burn Rate Jumps Over 700%

March 31, 2023
Ripple CEO Calls In Congress To Take Notice Of US SEC Enforcements
24/7 Cryptocurrency News

Ripple CEO Calls In Congress To Take Notice Of US SEC Enforcements

March 31, 2023
Justin Sun’s Huobi Exchange Partners Gala Games For L1 and Web3 Development
24/7 Cryptocurrency News

Justin Sun’s Huobi Exchange Partners Gala Games For L1 and Web3 Development

March 31, 2023
Top Mastercard-Backed Blockhain App Migrates To Hedera; Is HBAR Price Gunning For $1?
24/7 Cryptocurrency News

Top Mastercard-Backed Blockhain App Migrates To Hedera; Is HBAR Price Gunning For $1?

March 30, 2023
Next Post
Breaking: Silvergate Stock Crashes Nearly 50% As Firm Struggles With Crypto Deposits

Breaking: Silvergate Stock Crashes Nearly 50% As Firm Struggles With Crypto Deposits

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

Chainlink (LINK) To Pivot The AI Token Way?: Developers Hint

Chainlink (LINK) To Pivot The AI Token Way?: Developers Hint

February 15, 2023
Just In: US Fed Chair Jerome Powell Says Rate Hikes To Continue

Just In: US Fed Chair Jerome Powell Says Rate Hikes To Continue

February 1, 2023
Breaking: Shiba Inu (SHIB) Developer Drops Hint On Shibarium Beta Launch Date

Breaking: Shiba Inu (SHIB) Developer Drops Hint On Shibarium Beta Launch Date

January 20, 2023
Breaking: Binance Increasing Its Dominance Amid Hong Kong’s Crypto Hub Plan

Breaking: Binance Increasing Its Dominance Amid Hong Kong’s Crypto Hub Plan

February 3, 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