Crypto-focused bank operator Silvergate reported a more than $1 billion net loss for the fourth quarter as the sector suffered a “crisis of confidence.”
Silvergate posted a net loss of $1.05 billion for the quarter, compared with an $18.4 million profit in the same period a year earlier, according to a statement. The company reported a $751 million loss on securities and a $135 million impairment charge related to the estimated $1.7 billion of securities it expects to sell in the first quarter of 2023 to reduce borrowings.
“The digital asset industry experienced a transformational shift, with significant over-leverage in the industry leading to several high-profile bankruptcies,” the company said in the statement. “These dynamics created a crisis of confidence across the ecosystem and led many industry participants to shift to a ‘risk off’ position across digital asset trading platforms.”
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Source: https://www.theblock.co/post/202744/silvergate-bank-loss?utm_source=rss&utm_medium=rss