The Silvergate bank had been particularly watched since the fall of FTX, because of its many links with large crypto companies. This week, however, its CEO spoke out and was reassuring that Silvergate’s financial health is not in question.
Silvergate seeks to reassure the ecosystem
“Volatility is nothing new for us. With these words, Alan Lane, Silvergate’s CEO, communicated on the financial health of his company, recalling that it has been around for 9 years. However, the fears of the ecosystem are not entirely unfounded: Silvergate has confirmed that it is exposed to BlockFi, the platform that recently declared bankruptcy following the FTX affair.
But Silvergate, which is listed on the stock exchange and therefore has to be transparent about its results, is in good shape. The bank’s CEO said that customer deposits for the third quarter were $11.9 billion. Over the same period, FTX withdrew $1 million and BlockFi $20 million.
In total, Silvergate’s customer deposits amounted to $9.8 billion. Hence a conclusion from Silvergate’s CEO:
“This is a deep crypto bear market, but we don’t think it will go to zero. “
A reassuring piece of information for those who feared the contagion effects of the FTX affair, as the ecosystem is very much linked to other companies. However, this does not necessarily mean that Silvergate is in an enviable position. Its share price has fallen sharply since the summer, and the latest events have done nothing to improve its fortunes:
Silvergate (SI) share price
Will the bear market extended by the FTX disaster last? This is the question that the entire ecosystem is asking. The contagion effect seems to be more measured in the last few days.
