Silvergate Bank loses $1 billion amid crypto market turmoil

Silvergate Bank

Silvergate Capital Corp, a US-based cryptocurrency bank, has reported a $1 billion loss for Q4 2022, which it attributes to a “crisis of confidence” in the sector following several large bankruptcies.

The bank’s shares fell 2.9% to $12.94 in after-hours trading, and have lost almost 90% of their value over the past year.

The bank’s CEO, Alan Lane, said in a statement that while the bank is taking action to navigate the current environment, it believes in the digital asset industry and remains focused on providing value-added services for its core institutional customers.

The bank has also laid off 40% of its staff, or 200 employees, in early January and sold debt at a loss of $718 million to cover withdrawals after the collapse of Bahamas-based crypto exchange and other crypto failures.

Other crypto companies, like Coinbase Global Inc., are also expected to announce lower earnings and have made cuts to their workforce.


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