Silvergate Capital announced a net loss of $ 1 billion for the 4th quarter of 2022
Silvergate Capital announced a net loss of $ 1 billion for the 4th quarter of 2022
The bank-Silvergate Capital-based on cryptocurrencies-reported a net loss of $ 1 billion in the area of digital asset for the last quarter of 2022.
The company recently released almost half of its workforce due to massive withdrawal applications from customers.
The disappointing Q4
The fourth quarter of 2022 with its decline in market and bankruptcies pressed a dark stamp to the legacy of Krypto. The company Silvergate Capital based in California said that this dynamic triggered a "trust crisis in the entire ecosystem" and added financial damage to several companies.
The Kryptobank reported a net duty of $ 1 billion in the 4th quarter or a loss of $ 33. US dollar per ordinary share. It also showed a net profit of $ 40.6 million or $ 1.28 per watered share for the third quarter and a net profit of $ 18.4 million ($ 0.66 per watered share) for the fourth quarter 2021.
The company recorded a decline in the customers of digital assets: from 1,677 on September 30, 2022 to 1,620 at the end of December.
The Silvergate Exchange Network enabled $ 117.1 billion transfers in the last quarter of 2022, which corresponds to an increase of $ 112.6 billion in the third quarter. Nevertheless, the figures were even more impressive in the fourth quarter of 2021 than it implemented $ 219.2 billion.
The customer-related fees for digital assets amounted to $ 6.6 million, a decrease of 16 % compared to the previous quarter.
The average crypto interludes accounted for $ 7.3 billion in the fourth quarter, significantly less than $ 12 billion, which were recorded in the third quarter of the past year.
Despite the reported loss, the shares of Silvergate rose by almost 12 %. Si is currently being traded at about $ 14.70 while moving around $ 13.20 yesterday.
The previous editions
Silbertor specified in November last year that his financial relationship with Blockfi was limited to less than $ 20 million of his entire customer deposits. It also claimed that it has no investments in the bankruptcy cryptocurrency loans.
in front of CEO alan lane outlined that the collapsed crypto gigant ftx no storage for the bitcoin-assured Sen Leverage loan from Silvergate. He added that his company had no outstanding loans or investments on the stock exchange.
Nevertheless, many corporate customers withdraw their assets, while SI broke up by 45 %. In order to protect his financial stability, Silvergate has released around 40 % of his employees and distanced himself from the idea of starting its own digital currency project.
Despite the difficulties, Lane said, the company remains a supporter of the cryptocurrency industry and maintains a "highly liquid balance with a strong capital position".
"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 value-added services for our most important institution," he added.
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