Silvergate Capital to post $1 billion loss in Q4 2022
Less than a month after Silvergate Bank reported a sharp drop in customer deposits, Silvergate Capital Corporation, a parent of crypto-focused financial institutions, said on January 17 that a change seen in the fourth quarter (Q4) has helped. To summarize, according to the company a crisis of confidence had arisen and this in turn resulted in a shift in risk of digital assets trading on the platform. As a result of the resulting environment, Silver Gate said the group posted a net loss of $1.0 billion in the fourth quarter, or a loss of $33.16 per share. The Q4 performance resulted in net income of $40.6 million, or $1.28 per diluted share, in the third quarter of 2022. As a result of this massive loss, Silver Gate Capital’s new financial results show that the group lost $948.7 million for the whole of 2022, or $30.07 per share. As reported in early January, staff at Silver Gate Bank came under fire after it became known that the central bank’s customers had withdrawn more than $8 billion in deposits on crypto. As a result, the crypto market has been bearish since May 2022, and according to Silver Gate, it was forced to sell debt securities at a loss of approximately $718 million. Additionally, the bank said it would receive an impairment charge of $196 million on the blockchain-based payment solution acquired from Diem. Commenting on the group’s latest financial results, Silvergate CEO Alan Lane says that while he takes action to navigate the current environment, his mission has not changed and he believes in the digital asset industry and he Focused to deliver value added services to core institutional clients and for the same it is committed to maintaining a highly liquid balance sheet with a strong footing and will continue to do..
