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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 FTX.com 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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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.