Why Shares of Silvergate Capital Crashed Hard Today
Shares of the crypto bank Silvergate Capital (NYSE: SI) crashed today after it delivered select preliminary results for the fourth quarter of the year. Shares were down more than 46% as of 10:38 a.m. ET on Thursday.
Silvergate runs a real-time payments system called the Silvergate Exchange Network (SEN) that enables institutional traders and crypto exchanges to transfer dollars around the clock.
SEN makes crypto trading more efficient because the U.S. banking system does not run in real time, and the network also helps crypto exchanges conduct their daily business. As crypto took off in 2020 and 2021, Silvergate gained lots of customers who brought lots of deposits that the bank pays no interest on.
Source Fool.com
