Photographer: Andrey Rudakov/Bloomberg Silvergate Capital Corp. surged after posting fourth-quarter results that gave investors an indication the crypto-focused bank has so far weathered the FTX meltdown, even after it was forced to fire staff and sell assets. Silvergate reported a $1 billion loss for the period and said it will shed some non-core, digital-asset customers, eliminate a portion of its digital-asset product portfolio and assess its pipeline of prospective customers. Still, investors — who’d already digested preliminary results earlier this month revealing a dramatic draw down in deposits and plans to fire 40% of the bank’s staff— seized on some bright spots. “Things have kind of troughed out a little bit, and I don’t really think there were any surprises,” KBW analyst Michael Perito said in a phone interview. He pointed to Silvergate’s $4.6 billion of cash on hand as well as its $12.93 in book value per common share — a key gauge of bank health that was better than Perito expected. “The business is intact, and has battled through a historic shock to its system, with still plenty of capital and liquidity at hand,” Perito wrote in an earlier note. Silvergate’s total average deposits for digital-asset customers […]
Silvergate Surges on Earnings Showing Business Is “Intact”
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