Why Shares of Silvergate Capital Are Falling Today
Shares of the crypto bank Silvergate Capital (NYSE: SI) traded roughly 15% lower as of 10:29 a.m. ET today after the company reported earnings results for the third quarter of the year.
The headline numbers were very good for Silvergate. The bank generated record diluted earnings per common share of $1.28 on total revenue of more than $89 million. However, those numbers came up short of what analysts had been forecasting for the quarter.
The bank has built a real-time payments system called the Silvergate Exchange Network (SEN), which enables crypto exchanges and institutional investors to transact in real time and therefore trade crypto more efficiently. Clients that use SEN tend to bring large sums of non-interest-bearing deposits to the bank, which Silvergate doesn't pay any interest on.
Source Fool.com
