The collapse of FTX continues to take its toll, including BlockFi, which in turn went bankrupt. Investors then fear the fate of the crypto-bank Silvergate, which has links with BlockFi. But Silvergate tried to reassure them in a press release by declaring its minimal exposure to BlockFi. This is limited to less than $20 million of its total deposits from all customers. However, this did not prevent its stock market value from falling drastically.
Silvergate says it only has $20 million exposure to BlockFi
Silvergate is a provider of innovative financial infrastructure solutions and services in the digital asset industry. She said in a communicated press release on Monday that it was only exposed to BlockFi to the tune of $20 million of its total deposits from all digital asset customers. She also added that BlockFi is not the custodian of Silvergate’s bitcoin-backed SEN leveraged loans. The latter continue to operate as planned, without any loss or forced liquidation to date. The company therefore has no investment in BlockFi.
Alane Lane, the company’s CEO, said Silvergate’s platform was specifically designed to handle stress and volatility. He also reported that the company is now subject to false and misleading claims. It must be said that the fall of the FTX continues to feed the fear of investors.
Consequences on its stock market value
Silvergate is listed on the New York Stock Exchange under the symbol SI. For yesterday’s session, SI’s price fell 11.1% and was down 83.6% year-to-date. Its stock market situation has not been the most favorable since the beginning of the year.
The collapse of the crypto market did not improve his situation. Its (SI) share price has plunged this year although this has been the case for most publicly traded cryptocurrency companies.
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