Silvergate posts $1 billion loss as crypto industry suffers a ‘crisis of confidence’
Crypto-focused bank operator Silvergate reported a more than $1 billion net loss for the fourth quarter as the sector suffered a “crisis of confidence.”
Silvergate posted a net loss of $1.05 billion for the quarter, compared with an $18.4 million profit in the same period a year earlier, according to a statement. The company reported a $751 million loss on securities and a $135 million impairment charge related to the estimated $1.7 billion of securities it expects to sell in the first quarter of 2023 to reduce borrowings.
“The digital asset industry experienced a transformational shift, with significant over-leverage in the industry leading to several high-profile bankruptcies,” the company said in the statement. “These dynamics created a crisis of confidence across the ecosystem and led many industry participants to shift to a ‘risk off’ position across digital asset trading platforms.”
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Andrew Rummer