Silvergate bank had been particularly watched since the fall of FTX, due to its many ties to major crypto firms. This week, however, its CEO spoke and was reassuring: the financial health of Silvergate would not be in question.
Silvergate seeks to reassure the ecosystem
“Volatility is nothing new to us.It is with these words that Alan Lane, CEO of Silvergate, communicated on the financial health of his company, recalling that the latter has existed for 9 years. The fears of the ecosystem are not entirely unfounded, however: Silvergate confirmed to be exposed to BlockFithe platform that recently declared bankruptcy following the FTX affair.
👉 More on this – Following its bankruptcy, BlockFi sues Sam Bankman-Fried
But Silvergate, which is listed on the stock exchange and must therefore be transparent about its results, is in good health. The CEO of the bank specifies that customer deposits for the third quarter reached an amount of 11.9 billion dollars. Over the same period, FTX withdrew $1 million, and BlockFi $20 million.
In total, deposits made by Silvergate customers amounted to $9.8 billion. Hence a conclusion from the CEO of Silvergate:
“This is a deep crypto bear market, but we don’t think it will go to zero.»
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Reassuring information for those who feared the contagion effects of the FTX affair, the ecosystem being closely linked to other companies. However, this does not necessarily mean that Silvergate is in an enviable position. Its share price has fallen sharply since this summer, and recent developments have done nothing to improve its fortunes:
Silvergate (SI) share price
Will the bear market prolonged by the FTX disaster last? This is the question that the whole ecosystem is asking. The contagion effect seems in any case to be more measured in recent days.
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Source: CNBC
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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