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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.

article-image

Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall

article-image

If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale

article-image

Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference

article-image

Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour

article-image

Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of

article-image

Franklin Templeton has the lowest intended ETH fund fee so far, though a similar advantage did not help it win the race for bitcoin ETF assets