Silvergate Worst Performing Crypto Stock YTD

One month into 2023, its share price has continued its stiff downtrend in the face of skepticism stemming from poor quarterly earnings

article-image

Silvergate modified by Blockworks

share

Silvergate shares sprung to life Monday after BlackRock, the world’s largest asset manager, reported an increased stake in the crypto bank.

BlackRock bumped its Silvergate stake to 7.2%, but that has done little to correct the course for this year’s worst-performing crypto stock.

In year-to-date terms, Silvergate is down 18% to around $14.25 per share while all other crypto-related equities have seen their prices soar, with stocks in certain sectors more than doubling in value. 

Of the 49 crypto stocks Blockworks reviewed, Silvergate remains the only outlier across an otherwise lucrative bet on a number of the industry’s sectors, including mining, this year.

Repeated attempts to reclaim positive gains, including a 20% surge in its stock in mid-January, have made little impact on its 94% tumble from all-time highs of $239 per share, seen Nov. 21, 2021.

By comparison, publicly-listed rival Signature Bank, which recently announced it would only handle crypto transactions above $100,000 for its customers via SWIFT, is up nearly 14% over the same period, NASDAQ data show.

Silvergate’s total digital asset customer deposits declined from $11.9 billion at the end of the third quarter to $3.8 billion by the end of last year. 

Spooked market participants rushed to withdraw more than $8 billion in digital assets from the bank following concerns over its ability to continue operating business as usual.

In a bid to fulfill those withdrawals and generate liquidity, the bank had to sell assets at an inopportune time, it said in a fourth-quarter earnings report. As a result, the bank booked a $1 billion loss.

The impact on its business has been attributed to concerns over the bank’s exposure to bankrupt FTX, which it serviced right up until the exchange’s collapse in November, as well as widespread fear over market contagion.

Last month, Silvergate also announced a 40% cut to its staff in an attempt to further reduce its expenditures.

Silvergate did not immediately respond to a request for comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Unlocked by Template (7).png

Research

Union’s improvements upon Tendermint consensus through CometBLS, coupled with ZK proving through Galois, allow for a broadly scalable, cost efficient, and low latency IBC implementation that is feasibly scalable across every existing blockchain, virtual machine and runtime. The implementation offers modular crosschain interoperability without the need for trusted intermediaries.  

article-image

35% of admitted teams are building AI apps, while 30% are using stablecoins

article-image

Those in the US who preregistered for the app got $150 worth of WLD

article-image

The L2 chain with opt-in privacy features was eight years in the making

article-image

Bitcoin stands on the shoulders of these Cypherpunk giants

article-image

Unto’s Will Yoo and Liam Heeger spoke to the Empire newsletter about their raise and how they plan to build Thru

article-image

Greater efficiency, William Jevons predicted, would lead to even greater consumption