Why Silvergate Capital Stock Fell Again On Friday
Shares of Silvergate Capital (NYSE: SI) had another rough day on Friday. The regional bank at the heart of the cryptocurrency sector keeps facing new fallout from the FTX exchange's financial meltdown. Silvergate's stock traded 11.7% lower at 12:24 p.m. ET.
Silvergate already issued a statement, explaining that its exposure to financial damage from the FTX crash is limited to "less than 10%" of the bank's $11.9 billion in customer deposits. The exchange had not signed any loans from Silvergate, and FTX was never an active custodian on the Silvergate Exchange Network's (SEN) liquidity products.
This Wednesday, the company also posted a mid-quarter update with some updated financial data. Excluding assets owned by FTX and related parties, Silvergate's client deposits now stand at $9.8 billion, suggesting that other customers have withdrawn approximately $0.1 billion of their funds in recent weeks. At the same time, SEN is running as expected and Silvergate had no loan losses to report.
Source Fool.com
