Silvergate Loses $1 Billion By End of 2022 – Crypto Bank Faces Bear Market

Bad time – The year 2022 will remain as a period bloody in the history of cryptocurrencies. Even major crypto companies have often been loved fire a significant part of their employees, like again Coinbase and Crypto.com recently. signature the silver gatedescribed as one of the first “crypto banks”, is no exception and presents a Catastrophic 4th quarter.

$1 billion loss for Silvergate

By the end of 2022, balance season companies arrived. As one might suspect bear market in Bitcoin (BTC) and its ilk, most crypto companies are underwater, especially in the last quarter.

GROUP Silvergate Capital Corporation and its subsidiary in Silvergate Bank I’m from Release this January 17, 2023 the results of their balance sheet. And just to say right away that the numbers are not really not good.

Thus, Silvergate’s 4th quarter was particularly bloody, with one net loss which is attributable to ordinary shareholders which amounts to 1 billion dollars. That’s a loss of $33.16 per common share. In the panic of the decline of FTXwhich has created versatile movement of funds, it turns out that trading volumes processed by the Silvergate Exchange Network have increased by 4% during the last quarter of 2022. They are 117.1 billion dollars dollar transfers that have been processed.

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A “crisis of confidence” in the crypto sector that has damaged

Of course, of course mismanagement AND foreclosures Successive major companies in the crypto-asset sector have caused a cascade of difficulties for the bank Silvergate, which is closely associated with this industry. It is particularly important loss of credibility in centralized players that has violently affected the cryptocurrency market, according to the Silvergate teams.

“(…) a pronounced over-indebtedness in the sector [crypto] led to several high-profile bankruptcies. This dynamic has created a crisis of confidence throughout the ecosystem. (…) [Silvergate] during the last quarter there was a significant outflow of deposits. »

CEO of Silvergate, Alan Lanestill a lot remains safe on the innovative promises of cryptocurrencies and their technologies:

“We believe in the digital asset industry and remain focused on providing value-added services to our key institutional clients. »

Note, in fact, that despite the 47 lost customers in the last quarter, the balance of 2022 remains mostly positive in terms of new institutional clients. So Silvergate saw these very rich past investors from the year 1381 end of 2021, in 1620 (+239) at the end of 2022 (it was 1677 at the end of last September). It must be said that investors institutional investors are still safe in the long term in bitcoins and cryptocurrencies.

Bitcoin and cryptocurrencies are here to stay and will change the landscape of the economy, everyone agrees. For your part, don’t delay too much go register to AscendEX. Get 10% discount on trading fees (commercial link, see terms on site). Instead, come and claim returns for your cryptos with complete peace of mind by registering with AscendEX (commercial link).

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