1: silvergate reported a $1 billion net loss attributable to shareholders in q4, while signature bank (sbny) netted profits of close to $301 million in the same period. silvergate specializes in cryptocurrency transactions and has worked with the now-bankrupt crypto exchange ftx and its sister trading firm alameda research. last december, silvergate was hit with a class action suit over its dealings.
2: the fed hiked interest rates seven times last year to counter inflation. silvergate is a crypto bank based in california and signature bank’s deposits were down $14 billion last year. factset predicted signature bank would net $4.82 a share in q4 and $4.34 a share in the preceding quarter.
3: silvergate announced it would be cutting its headcount by roughly 40%, or 200 people, in order to stymy the downturn. ceo alan lane said the firm’s mission has not changed and remains focused on providing value-added services for its core institutional customers. ceo joseph depaulo attributed the decline in deposits to “a challenging cryptocurrency environment and our planned reduction in digital asset banking deposits.” silvergate is facing a “crisis of confidence across the ecosystem.”
https://decrypt.co/119378/crypto-bank-silvergate-reports-1b-net-loss-q4-industrys-crisis-confidence
