What to Expect in Silvergate Capital's Upcoming Earnings Report
The crypto bank Silvergate Capital (NYSE: SI) has had a volatile last couple of months, rising to a high of $222 per share in early November and then falling to around $135 earlier this week. Since going public in late 2019, however, the stock is still up about 850%.
The company plans to release fourth-quarter and full-year earnings results for 2021 before the market opens on Tuesday, Jan. 18. With so much volatility as of late, let's look at what to expect from Silvergate's next earnings report.
Silvergate's business model is powered by the bank's Silvergate Exchange Network (SEN), a proprietary real-time payments network that facilitates trading between institutional investors and crypto exchanges. The network already has more than 1,300 clients, who bring large amounts of deposits that require no interest payments from Silvergate. SEN powers the whole business model, not only bringing in the deposits but also generating fee income because clients use other traditional banking products. Silvergate also is able to originate niche lines of credit collateralized by Bitcoin to clients on SEN, a service called SEN Leverage.
Source Fool.com
