The crypto-focused bank seems to be having a sigh of relief after spending time after it came to light that the bank had some accounts of FTX and Alameda used to move users’ funds. It’s still under the radar of the authorities. But its shares had recently jumped when Blackrock reported a 7% stake in the crypto bank.

Shares of silvergate capital increased by 9 after blackrock revealed a 7% holding. Shares of the cryptocurrency bank increased after a filing with the sec on january 31 became public. Blackrock upped its stake in silvergate from 5 to 7% in
— Zuleyka Keeler (@zuleyka_keeler) February 1, 2023

Silvergate Share Analysis

At the time of writing, the shares were changing hands at $14.24 with a jump of 9.96%, with its market cap at $450.84 million and a volume of 12.74 million shares. Analysts gave a 2.10 rating for hold, while the projected earning growth was 55.32% meaning from $0.47 to $0.73 per share. The tentative price target is a 154.1% upside from the currency rate of $36.18.

After January 31, 2023, filing with the SEC became public, BlackRock raised their holdings in Silvergate by 7.2%, a 5.9% increase from the previously reported state. Also, more than 70% of Silvergate Capital shares, freely available to trade, were sold at short.

Even though this new year, 2023, caused almost every cryptocurrency and related stocks some warmth in this crypto winter, Silvergate struggled to get the light due to the position damage because of FTX. Though higher on some days, the current rate is down by 20% in 2023 and saw an overall drop of 87% over the past year.

Citing a massive withdrawal influx in the fourth quarter, majorly due to their involvement in the FTX saga, had caused their shares to the tank by 40% earlier in January. This could be because the general customer is still to recover from the earth-shattering events that plague the crypto industry in 2022. All these events fueled the distrust people had, and the slow economy worldwide curtailed the risk-taking ability; hence investment dropped in the sector.

BlackRock (BLK)

BlackRock is one of the largest asset managers in the world and has maintained quite a positive stance towards crypto and blockchain technology. They were an investor with FTX and launched a private trust to expose their clients to spot bitcoin.

At the time of writing, it was trading at $759.21 with a slight jump of 1.52%, with a market cap of $114.03 billion and a volume of 566,640 shares. Analysts have given a 2.54 rating for moderate buy. The price target is expected to be $738.80, which is a 2.7% downside from the current rate. The projected earnings growth is expected to be 14.10% meaning from $34.69 to $39.58 per share.

Source: https://www.thecoinrepublic.com/2023/02/01/blackrock-raised-stakes-in-crypto-bank-causing-silvergate-capital-shares-to-jump/