Silvergate Capital Corp Plunges On $8.1 Billion in Withdrawals
Jan 5, 2023 By MarketDepth
Silvergate Capital Corp (SI:NYQ) has been hit from the fallout of the FTX collapse as the Crypto industry struggles to recover. As deposits start to falter and withdrawals increase the industry to trying to navigate the current climate of the sector. Silvergate is the latest victim that has let go of 40% of its staff and continues to sell assets at steep losses.
Customers withdrew $8.1 Billion in the fourth-quarter from Silvergate as the company was forced to liquidate assets at a $718 Million loss.
“In response to the rapid changes in the digital asset industry during the fourth quarter, we took commensurate steps to ensure that we were maintaining cash liquidity in order to satisfy potential deposit outflows, and we currently maintain a cash position in excess of our digital asset related deposits.”Chief Executive Officer Alan Lane said in a statement
Silvergate is down 42% on the day and down over 90% in a year. The losses in the crypto sector have triggered a mass exodus as many individuals took losses and play the wait and see model