Why Shares of Silvergate Capital Rose Today
Shares of the cryptocurrency bank Silvergate Capital (NYSE: SI) rose nearly 11% today for no specific reason. However, driving the move could be the rise of the broader crypto market and more investors waking up to Silvergate's excellent business model and opportunity with stablecoins.
Silvergate was the first bank to set up a real-time payments platform that allowed businesses on the network to transact in real time, clearing and settling payments instantly. The U.S. doesn't operate on a real-time payments system, and cryptocurrencies trade around the clock, so this kind of system has appealed to crypto exchanges, institutional crypto traders, and others.
Because of the very nature of the business, the stock does trade with correlation to the broader crypto market, which in general rose today, so that might be benefiting the stock.
Source Fool.com
