1 year ago
69 The world’s biggest crypto bank, Silvergate Capital, recently published its Q3 statement showing good but worse-than-expected earnings. Silvergate’s statement was somehow mixed with regard to performance. However, the bank’s president and CEO Alan Lane considers that “Silvergate delivered another quarter of strong performance.”
Notably, the bank achieved a net profit of $43.3 million – a significant growth over the second quarter’s $38.6 million. Out of that amount, $40.6 million will be available to the normal shareholders at $1.28 per share.
Silvergate also said that its digital asset customer number grew to reach 1,677 from 1,305 in late September 2021. Despite that surge, digital asset fees plunged from $8.8 million in Q2 to $7.9 million. This drop might be just one of the effects of the current ‘crypto winter’ which, among many other things, rendered up to 12,000 cryptos dead in the water by October.
Maybe the sharpest drop seen in the statement concerns The Silvergate Exchange Network (SEN). The crypto-to-fiat transaction service saw a considerable plunge of 41%. It managed to handle transactions worth $112 billion in Q3 compared to $191 billion in the second quarter of the year.
The Markets Reacted To Silvergate’s Earning Statement
The markets appeared quick to react to Silvergate’s report. Despite Lane’s statement that he thinks his firm performed quite well, the company’s stock dropped by 22% to $55.1 on October 18. After-hours did not bring lots of improvement to this situation since the small uptrend amounted just to a mere 0.7%.
Although the lower-than-expected results are partly the cause, they probably are not the only ones. In a recent conference call with shareholders, Silvergate’s CEO said that his firm is no longer on track in the matters of issuing its stablecoin.
Lane expressed his deep regret that Silvergate will not launch the stablecoin this year but said the delay is not related to any technological issues. He went on to explain his belief that his bank is in an ideal position compared with other banks when it comes to the issuance of its tokens.
He also said that Silvergate is also striving relentlessly to guarantee regulatory compliance – a step that is important to guarantee a seamless launch, particularly with the recent effort to expand the regulatory infrastructure.
