Silvergate Capital Can Perform Well Even When the Price of Bitcoin Doesn't
A lot of publicly-traded companies that operate in the cryptocurrency space tend to have shares that closely follow the price of bitcoin (CRYPTO: BTC), the largest cryptocurrency and the pioneer of digital currencies and blockchain technology. What I mean by that is when the price of bitcoin goes up, so do the associated stocks, and vice versa.
Silvergate Capital (NYSE: SI), a bank that operates in the crypto space, has been clumped into this category as well, which makes a certain amount of sense given its business model. But after seeing Silvergate's second-quarter earnings results, I think there is good reason to believe that the bank's performance, at least on an earnings basis, isn't necessarily correlated with the price of Bitcoin. Here's why.
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Source Fool.com
