Bad pass – The year 2022 will remain as the period bleeding in the history of cryptocurrencies. Even major cryptocurrency companies have often had to do this fire a significant part of its employees, like Coinbase again and Crypto.com recently. The company silver gatedescribed as one of the first “crypto banks”, is no exception, and features a Disastrous 4th quarter.
$1 billion in deadweight loss for Silvergate
With the end of 2022, the budget season companies have arrived. As one might suspect with the bear market on Bitcoin (BTC) and the like, most cryptocurrencies are under water, especially in the last quarter.
The group Silvergate Capital Corporation and its branch a Silvergate Bank they have just published the results of their balance sheet this January 17, 2023. And just to say right away that the figures are not really not good.
The 4th quarter of Silvergate was therefore particularly bloody, with a net loss attributable to ordinary shareholders which amounts to $1 billion. That’s a loss of $33.16 per share of common stock. In a panic of the fall of FTXwhich created all-out fund movements, it turns out that the trading volumes processed by the Silvergate Exchange Network have increased by 4% during the last quarter of 2022. So these are $117.1 billion dollar transfers that have been processed.
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A “crisis of confidence” in the crypto sector that has hurt
Obviously, the bad management and the failures Successive large companies in the cryptocurrency sector have caused a cascade of difficulties for Silvergate bank, which is closely related to this sector. It is especially important loss of confidence in centralized players which has had a violent impact on the cryptocurrency market, according to the teams at Silvergate.
“(…) a significant over-indebtedness of the sector [crypto] led to several high-profile bankruptcies. This dynamic has created a crisis of confidence in the entire ecosystem. (…) [Silvergate] experienced significant outflows of deposits during the last quarter. »
Chief Executive Officer of Silvergate, Alan Lanestill a lot remains confident in the innovative promises of cryptocurrencies and their technologies:
“We believe in the digital asset industry and remain focused on providing value-added services for our key institutional clients. »
It should be noted, in fact, that despite 47 customers lost in the last quarter, the 2022 budget remains largely positive in terms of new institutional clients. So Silvergate has seen these past investors very wealthy from 1381 end of 2021, to 1620 (+239) at the end of 2022 (there were even 1677 at the end of last September). Investors should be told institutional investors are still confident in the long term in bitcoin and cryptocurrencies.
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