Why Silvergate Capital Popped This Week
Shares of Silvergate Capital (NYSE: SI) popped as much as 82% this week, according to data from S&P Global Market Intelligence. The bank and financial infrastructure provider for the cryptocurrency market was roiled by the FTX scandal in late 2022 but has since seen a resurgence, with rising crypto prices and a recent announcement that Blackrock made an investment in its stock. As of 3:41 p.m. ET on Thursday, Feb. 2, shares of Silvergate Capital are up 53.5% this week.
Silvergate Capital runs a bank that services cryptocurrency companies. Infamously, it was connected to the now-disgraced FTX exchange, which defrauded customers out of billions in deposits.
All the details are still unknown, but senators have continued to press Silvergate executives on their involvement with the fraudulent cryptocurrency exchange, which investors have taken as a sign of trouble for the company. Shares of Silvergate have collapsed, down almost 80% in the last six months, even after the recent share price pop.
Source Fool.com
