Silvergate, the crypto-friendly bank – While thewinter crypto falls on the big names in the ecosystem, but also in traditional finance, silver gate try to keep your head above water. Indeed, despite more a billion dollar loss I declared at the end of the year 2022, the bank confirmed the good health of its cash. It is still the same when the latter announced it, this weekend, suspend dividends shareholders of his company in order to preserve his financial situation.
Silvergate and cryptocurrencies: after the bull run euphoria
Set the scene. So that bitcoin and cryptocurrency prices increased in height, silver gate Also floated on a small cloud. Having become one of the main bankers for cryptocurrency companies even though some exchanges in the United States, Silvergate is a major player in the ecosystem.
Then came the explosion of the FTX Crypto Platform, the culmination of a year 2022 tormented by a cascade of disasters and causing a real crisis of confidence. Crypto winter hits the banking giant that held, for example, $20 million at BlockFi. Touched, but not sunk, Silvergate confirms to be in good health, not without taking some preventive decisions.
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When the weather blows in the bear market
Yes, according to a press release from silver gate Published last week, these various hardships force the company to protect itself and above all to preserve its cash. She decides where suspension of dividends “Series A Preferred Shares”:
” The move reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates the recent build-up of the digital asset industry. The Company continues to maintain a cash position in excess of its deposits related to its customers’ digital assets. »
The purpose of this decision? Custodian of treasury and liquidity so that we can continue to get through the crypto winter without too much trouble. This is reminiscent of the choice of other companies such as Group of digital currencieswhose Suspend your dividend payments to your shares Also this month, in order to protect against market conditions.
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