Silvergate Capital suffered a loss of $ 1 billion in the fourth quarter of 2022
Silvergate Capital suffered a loss of $ 1 billion in the fourth quarter of 2022
The Silvergate Capital Corporation, the parent company of the Krypto-focused Bank Silvergate Bank, has attributed the loss of $ 1 billion, which arose in the fourth quarter of 2022, to the crisis that penetrates the entire crypto ecosystem. Although Silvergate has taken steps to find its way around the current environment, according to CEO Alan Lane, the company remains "on the provision of added value services for [Its] institutional core customers."
crisis of trust
less than a month after the Silvergate Bank reported a massive decline in customer deposits, the parent company of the cryptofocussed financial institution, Silvergate Capital Corporation, said on January 17th (q4) "Transformative shift" contributed to "creating a crisis of trust in the entire ecosystem". This in turn triggered the relocation towards a "risk -free position on trading platforms for digital assets," said the parent company.
As a result of this changed environment, Silvergate said that the group suffered a net loss of $ 1.0 billion in the fourth quarter or a loss of $ 33.16 per ordinary share. In contrast to the net profit of $ 40.6 million or $ 1.28 per watered share, which was realized in the third quarter of 2022 in the fourth quarter.
Due to the massive losses in the fourth quarter, the latest finance results from Silvergate Capital show that the group has suffered a total loss of $ 948.7 million or $ 30.07 loss per ordinary.
silvergate continues to commit to a "highly liquid balance"
As a result and due to the declining conditions that have been at the cryptom market since May 2022, Silvergate was forced to sell debt titles with a loss of around $ 718 million. In addition, the bank said that it would "make a reduction in $ 196 million" for the blockchain-based payment solution, which it acquired from Diem.
Alan Lane, CEO of Silvergate, commented on the recent financial results of the group as follows:
"Although we take decisive measures to find our way in the current environment, our mission has not changed. We believe in the digital-asset industry and continue to concentrate on the provision of added value services for our most important institutional customers. For this purpose, we are committed to maintaining a highly liquid balance with a strong capital."
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