Why Shares of Silvergate Capital Are Falling Today
Shares of the crypto bank Silvergate Capital (NYSE: SI) traded more than 6.6% lower as of 12:40 p.m. ET today after a Wall Street analyst lowered his rating on the bank and also cut his price target.
Wells Fargo analyst Jared Shaw double-downgraded Silvergate Capital from an "overweight" rating to "underweight" and also lowered his price target from $115 to $70. Shaw believes growth at Silvergate is going to be "significantly limited in the current environment," according to a research note recently put out by the analyst.
Silvergate Capital has developed a real-time payments system called the Silvergate Exchange Network (SEN) that better facilitates crypto trading between institutional investors and crypto exchanges. Clients that join SEN bring large sums of cheap deposits that Silvergate can invest into higher-yielding assets.
Source Fool.com
