{"id":16670,"date":"2023-01-20T10:14:51","date_gmt":"2023-01-20T10:14:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/silvergate-capital-incurs-loss-of-1-billion-in-q4-of-2022-finance-bitcoin-news\/"},"modified":"2023-01-20T10:14:51","modified_gmt":"2023-01-20T10:14:51","slug":"silvergate-capital-incurs-loss-of-1-billion-in-q4-of-2022-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/silvergate-capital-incurs-loss-of-1-billion-in-q4-of-2022-finance-bitcoin-news\/","title":{"rendered":"Silvergate Capital Incurs Loss of $1 Billion in Q4 of 2022 \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Silvergate Capital Corporation, the parent firm of the crypto-focused bank Silvergate Bank, has attributed the $1 billion loss it incurred in the fourth quarter of 2022 to the confidence crisis that permeates the entire crypto ecosystem. While Silvergate has taken steps to help it navigate the current environment, according to the CEO Alan Lane, the firm remains \u201cfocused on providing value-added services for [its] core institutional customers.\u201d<\/strong><\/p>\n

Confidence Crisis<\/h2>\n

Less than a month after Silvergate Bank reported a massive drop in customer deposits, the crypto-focused financial institution\u2019s parent firm, Silvergate Capital Corporation, said<\/a> on Jan. 17 that a \u201ctransformational shift\u201d seen in the fourth quarter (Q4) had helped to \u201ccreate a crisis of confidence across the ecosystem.\u201d This, in turn, sparked the shift to a \u201crisk off position across digital asset trading platforms,\u201d the parent firm said.<\/p>\n

As a consequence of this changed environment, Silvergate said the group incurred a Q4 net loss of $1.0 billion or a $33.16 loss per common share. The Q4 performance is in contrast to the net income of $40.6 million, or $1.28 per diluted share realized in Q3 of 2022.<\/p>\n

Due to the massive losses incurred in Q4, Silvergate Capital\u2019s latest financial results show that in the whole of 2022, the group incurred an overall loss of $948.7 million or $30.07 loss per common share.<\/p>\n

As reported<\/a> by Bitcoin.com News in early January, Silvergate Bank\u2019s stock took a heavy knock after it was revealed that customers at the crypto-focused bank had withdrawn more than $8 billion in deposits in Q4 alone.<\/p>\n

Silvergate Still Committed to Keeping a \u2018Highly Liquid Balance Sheet\u2019<\/h2>\n

Consequently, due to this, as well as the bearish conditions that have prevailed in the crypto market since May 2022, Silvergate said it was forced to sell debt securities at a loss of about $718 million. In addition, the bank said it would \u201ctake an impairment charge of $196 million\u201d on the blockchain-based payment solution it acquired from Diem.<\/p>\n

Commenting on the group\u2019s latest financial results, Silvergate CEO Alan Lane said:<\/p>\n

\u201cWhile we are taking decisive actions to navigate the current environment, our mission has not changed. We believe in the digital asset industry, and we remain focused on providing value-added services for our core institutional customers. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.\u201d<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/em><\/strong><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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