Tuesday, December 6, 2022

Crypto-focused Silvergate Bank Reports Stellar Q1 Earnings, Stock Shoots 14%

Must Read

[ad_1]

On Tuesday, April 19, crypto-focused Silvergate Bank (NYSE: SI) reported stellar earnings for the first quarter of 2022. As the result, the bank’s SI stock registered the highest surge in more than a month’s time.

The Silvergate Bank (SI) stock gained a staggering 13.21% on Tuesday making its biggest single-day jump since March 9. On Tuesday, the SI stock ended up trading at the $131.67 level.

For Q1 2022, the crypto-focused bank reported earnings-per-share (EPS) of 79 cents. This was 75% more than the Street estimates of 45 cents. Furthermore, the bank reported a 36% surge in the number of digital currency customers, which jumped to 1503. In a note to investors, KBW Michael Perito wrote:

“The combination of higher rates plus Silvergate’s ability to put cash to work in higher yielding assets should have a dramatic impact on the bank’s earnings power moving forward as shown in the first quarter”.

Silvergate Bank’s Growing Business

Amid a strong surge in the number of crypto users, the bank is witnessing similar growth in its business. Although the broader crypto market had a rocky start to this year, average crypto deposits at the bank surged to $14.7 billion.

At the same time, the bank’s Bitcoin-collateralized crypto loans business nearly doubled. The Exchange Network Leverage Program of Silvergate Bank offers Bitcoin-collateralized dollar loans. The commitments for this program surged to $1.1 billion.

Recently, Silvergate Bank offer MicroStrategy a $205 million loan backed by $800 million worth of BTC collateral. The SI stock has remained volatile this year while largely tracking the BTC movement. Speaking of the development, Alan Lane, president and chief executive officer of Silvergate, commented:

“We started off 2022 on a strong note, driven by the power of our platform and continued progress on our strategic initiatives. I’m particularly pleased with our first quarter results when you consider that this was one of the most challenging periods for the broader crypto ecosystem since the beginning of the pandemic.

While volume on the Silvergate Exchange Network was impacted by broader industry trends, I remain encouraged by the continued growth we saw in customers, SEN Leverage commitments, and average deposits, which reached a record $14.7 billion”.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

[ad_2]

Source link

Cryptoultimatum Crypto Trading Signal Service

LEAVE A REPLY

Please enter your comment!
Please enter your name here

I show You how To Make Huge Profits In A Short Time With Cryptos!
Trending
- Advertisement -

More Articles Like This