The unrest after the collapse of crypto exchange FTX threatens to put another company out of business. Crypto bank Silvergate warned Thursday evening that the continuation of the venture was in doubt. The institute postponed the presentation of the company figures for 2022, which was scheduled for March 16. The stock then collapsed by about 30 percent. This is one of the largest declines in the company’s history.
The money house, which specializes in transactions with cyber currencies such as Bitcoin, reported a loss of one billion dollars (935.98 million euros) for the fourth quarter of 2022 in January. Customers who were concerned about the bankruptcy of FTX had during this period $8 billion in Silvergate deposits withdrawn. That was about a two-thirds drop from September 2022. To stay afloat, the institution had to sell debt securities, resulting in a loss of $718 million alone.
According to further information, Silvergate was also forced to do this in early 2023. Due to the resulting losses, the bank could be “less than well capitalized”. In the aftermath of the FTX affair, Silvergate’s rival Genesis, among others, has gone into partial bankruptcy in recent months. At the same time, the crypto exchange Coinbase fell deep into the red.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
