The bank shored up liquidity as institutions in the digital-currency industry scrambled to lower risks.
Following the flow of high-profile collapses in the virtual-currency industry last year, Silvergate Capital Corp. on Thursday surprised investors with some startling fourth-quarter numbers two weeks early.
The news came after a bruising year for the crypto industry, including the bankruptcy of FTX, the collapse of BlockFi and fraud charges against the founder of Celsius Network. FHLB borrowings funded only 5% of $13.9 billion in total funding as of Sept. 30. That is a level Marinac termed “normal,” because the current industry norm is for FHLB borrowings to provide about 5% to 6% of funding.As part of its efforts to raise cash to cover deposit outflows during the fourth quarter, Silvergate said it sold $5.2 billion in securities, booking related losses of about $718 million.
Other banks with crypto exposure In an interview with MarketWatch on Jan. 5, Christopher Marinac, the director of research at Janney Montgomery Scott in Atlanta, said the U.S. banking industry’s exposure to the virtual-currency industry was “very limited,” with only three others significantly exposed:
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Temple defeats South Florida, 68-64, to earn third straight conference winDamian Dunn dropped a game-high 19 points and Khalif Battle added 15 in what were three straight wins against conference opponents for the Owls.
Read more »
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTXThe U.S. is seizing assets tied to FTX valued at hundreds of millions of dollars, including Robinhood shares and money in Silvergate accounts
Read more »
Feds move to seize Robinhood shares, Silvergate accounts tied to FTXFederal authorities are moving to seize hundreds of millions of dollars in assets in the U.S. tied to the bankrupt cryptocurrency exchange FTX, a sign that...
Read more »
WSJ News Exclusive | Silvergate Raced to Cover $8.1 Billion in Withdrawals During Crypto MeltdownSilvergate is paring back its businesses after taking a $718 million loss in the fourth quarter selling debt securities to raise cash
Read more »
Silvergate Cuts 40% Jobs, Writes Off Diem Asset AcquisitionCrypto-focussed bank Silvergate has laid off 40% of its staff or around 200 employees as it also shelves plans of launching its own digital currency. By parikshitm899
Read more »
Silvergate lost more than $700 million selling assets to cover withdrawals during crypto selloffThe collapse of crypto exchange FTX sparked a run on Silvergate Capital, and the bank raced to sell assets to cover about $8.1 billion in withdrawals.
Read more »