Silvergate Capital, the parent company to the crypto bank Silvergate, has announced it will be suspending Series A preferred stock dividends as it hopes to restructure following heavy loses and FUD surroundings its exposure to several now defunct crypto entities.
די פירמע האט געזאגט יאנואר קסנומקס that it was doing so to maintain liquidity on its balance sheet, all the while navigating a series of exposures to several of crypto’s most toxic entities, including FTX and Genesis.
CEO of Silvergate Capital Alan Lane said in a statement:
אין רעאקציע צו די גיך ענדערונגען אין די דיגיטאַל אַסעט אינדוסטריע בעשאַס די פערט פערטל, מיר האָבן גענומען קאָממענסוראַטע סטעפּס צו ענשור אַז מיר האַלטן געלט ליקווידיטי צו באַפרידיקן פּאָטענציעל אַוועקלייגן אַוטפלאָוז, און מיר דערווייַל האַלטן אַ געלט שטעלע מער ווי אונדזער דיגיטאַל אַסעט שייַכות. דיפּאַזאַץ.
Silvergate Capital Corp. is traded on the New York Stock Exchange under the ticker SI. The Silvergate bank, founded in a small California town in 1988, rose to prominence as the banker of choice for many now null crypto firms, including FTX, who had an estimated $1.2 billion worth of deposits held in the bank at the time of its collapse last November. While Genesis, the digital asset prime brokerage founded by Digital Currency Group CEO Barry Silbert, now insolvent, also had assets with the bank totaling $2.5 million, it was געמאלדן.
Compounding matters even further was a bank run that saw $8.1 billion worth of deposits withdrawn earlier this month in a decline of roughly 68%, forcing Silvergate to liquidate assets and lay off 40% of its staff. At the time, the company said there was a “crisis of confidence across the ecosystem.”
By the end of 2022, Silvergate said in a statement that they held more than $150 million worth of assets from customers who had filed for bankruptcy protection.
After going public in 2019, shares of Silvergate rose to a high of $222 in November 2021, the same month, Bitcoin peaked at over $65,000 USD. Since then, Silvergate Capital shares have fallen to $12.68, more than 90% below their all-time high.
Source: https://cryptoslate.com/silvergate-capital-announces-the-suspension-of-series-a-preferred-stock-dividends/