thecoinrepublic.com
- FTX was among the top five crypto exchanges globally.
Silvergate is a directed, institutionally-engaged bank whose stores are guaranteed by the Federal Deposit Insurance Corporation (FDIC). The bank is an individual from the Federal Reserve and holds a California state contract.
The bank was established with a motto to help its users during the volatile and transformation phases.
Silvergate Capital highlighted its exposure on FTX in its press release after it became clear that the exchange was on it brink of filing for bankruptcy.
FTX exchange was among the top five crypto exchanges globally, with a total valuation of $32billion(Estimated), which recently signed a deal to acquire Voyager crypto lending firm.
In Silvergate’s press release Alan Lane Chief Executive Officer of the company, noted that “Total deposits from all digital asset customers totalled $11.9 billion, of which FTX represented less than 10%.”
Lane futhure stated that “The firm did not have any outstanding loans nor Leverage in FTX, total deposits from all digital asset customers totalled $11.9 billion, of which FTX represented less than 10%.”
Concluding his statement, Lane quoted that “To date, all SEN Leverage loans have continued to perform as expected with zero losses and no forced liquidations.”
Silvergate also notes that Bitcoin collateralizes all its leverage loans, and the bank did not issue any unsecured loans.
Friday, 11 November, was quite good for investors as the price of Silvergate Stock surged by 5.32% before the market closed. It was the strongest Bullish Candle ever in the last two weeks, with more price surges likely ahead per analyst.
Earlier in October 2022, Bank released its quarterly reports; the company gained 12% in its third-quarter earnings to reach 43.3 Million USD in contrast to their previous quarter earnings equalling 38.6 Million USD. Common shareholder earnings rose from 23.5 Million USD in Q3 2021 to 40.6 Million USD in Q3 2022.
The number of digital asset consumers of the company increased from 1,585 users in June 2022 to 1,677 in September 2022. It is quite surprising as the crypto market is down to its knees compared to its all-time high in November 2021, when it topped 3 Trillion.
Silvergate was established in 1988 as an industrial loan company. After serving 25 in the industry, it launched its digital currency initiative in 2013 and has approximately 1350 digital currency and fintech clients globally.
Antonio Martino is serving as Chief Financial Officer at Silvergate; he joined the firm in 2019 and has 30+ plus experience in financial services and public accounting experience.