The Silvergate revenue for Q1 surges despite the low trading activity that was driven mainly by interest income so let’s read more today in our latest cryptocurrency news.
The Silvergate bank is a bank dedicated to serving industry institutions saw the Q1 income nearly double over the past year’s figures but it also reported falling BTC and ETH spot trading volume from the preivous quarter. As per the bank’s Q1 earnings report unveiled, the income for common shareholders increased 34% from the preivous quarter and 94% from last year.
In the meantime, the revenue increased 22% and 93% from the previous quarter and the company’s assets are worth $15.8 billion which more than doubled since 2021. however, Silvergate facilitated $142 billion in SEN transfers between crypto exchanges and financial institutions this quarter which is down from $219 billion in late 2021 and $167 billion from this time the same year. This is coupled with the broader lack of trading interest on the market in the past few months and according to the data, BTC and ETH topped $1 trillion in trading volume this quarter which is down 33% from the last.
This hasn’t impacted the company’s transaction revenue which stayed flat over the past three quarters and allowed overall revenue to surge and most of which came from itnerest income. One of the companies that pay interest in Microstrategy took out a $205 million BTC collateralized loan with Silvergate to buy more BTC. The digital currency deposits also continued to rise and average $14.7 billion from the exchange and institutional investors but so too have the company’s digital currency customers that number over 1500. the bank was responsible for buying out Diem which is the abandoned stablecoin project of Facebook for $182 million and seeks to expand the stabelcoin infrastructure to enhance growth.
As recently reported, The Crypto bank Silvergate cut all ties with crypto exchange Binance as reported earlier this morning when the exchange sent an email to its users stating that the platform will no longer support withdrawals and deposits via Silvergate. While it remains unclear why the crypto bank Silvergate Bank ended its partnership with Binance, the bank’s new partnership with Facebook’s project Diem could be the main reason. As the main issuer of Diem’s stablecoin, it is possible that the California-based bank is looking to distance itself from being associated with Binance and avoid any regulatory troubles.
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