The $1 billion loss Silvergate Capital Corporation suffered in the fourth quarter of 2022 is being blamed on the confidence crisis affecting the whole crypto ecosystem, according to Silvergate Capital Corporation, the parent company of the cryptocurrency-focused bank Silvergate Bank.
Despite taking steps to help it negotiate the present environment, Silvergate is still “focused on providing value-added services for [its] key institutional customers,” according to CEO Alan Lane.
The parent company of the cryptocurrency-focused financial institution, Silvergate Capital Corporation, stated on Jan. 17 that a “transformational shift” seen in the fourth quarter (Q4) had contributed to “creating a crisis of confidence across the ecosystem,” less than a month after Silvergate Bank reported a significant decline in customer deposits. The parent corporation claimed that this led to a “risk off posture across digital asset trading platforms.”
Due to this altered environment, Silvergate said that the group suffered a Q4 net loss of $1.0 billion, or a loss of $33.16 per common share.
According to Silvergate Capital’s most recent financial reports, the business lost $948.7 million or $30.07 per common share in 2022 as a result of the significant losses it experienced in Q4.
Alan Lane, CEO of Silvergate, commented on the organization’s most recent financial performance by saying: “We believe in the digital asset business, and we remain focused on offering value-added services for our core institutional customers.”