{"id":16999,"date":"2023-01-28T01:16:22","date_gmt":"2023-01-28T01:16:22","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/is-silvergate-stock-a-buy-after-it-suspended-preferred-stock-dividend\/"},"modified":"2023-01-28T01:16:22","modified_gmt":"2023-01-28T01:16:22","slug":"is-silvergate-stock-a-buy-after-it-suspended-preferred-stock-dividend","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/is-silvergate-stock-a-buy-after-it-suspended-preferred-stock-dividend\/","title":{"rendered":"Is Silvergate stock a buy after it suspended preferred stock dividend"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/01\/180944899_m-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/01\/180944899_m-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/01\/180944899_m-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/01\/180944899_m-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/><\/picture><\/div>\n<ul>\n<li>Silvergate Capital Corp suspends dividend on its preferred stock.<\/li>\n<li>Wedbush Securities analyst reiterates his neutral\u00a0rating on \u201cSI\u201d.<\/li>\n<li>Silvergate stock is currently down over 85% since mid-August.<\/li>\n<\/ul>\n<p>Silvergate Capital Corp ended 5.0% down on Friday after the crypto bank suspended dividend on its preferred stock.<\/p>\n<h2>Silvergate is trying to preserve capital<\/h2>\n<p>The embattled digital currency services company is cutting back on the payout to preserve capital. Its <a href=\"https:\/\/www.businesswire.com\/news\/home\/20230126006026\/en\/Silvergate-Suspends-Series-A-Preferred-Stock-Dividend\" target=\"_blank\" rel=\"noopener\">press release<\/a> reads:<\/p>\n<blockquote>\n<p>This decision reflects the Company\u2019s focus on maintaining a highly liquid balance sheet with a strong capital position. Company continues to maintain a cash position in excess of its digital asset customer related deposits.<\/p>\n<\/blockquote>\n<p>The California-based company also confirmed that its Board will re-evaluate the quarterly payment once market conditions improve.<\/p>\n<p>Silvergate stock has lost over 85% since mid-August, related partially to the FTX collapse. Consequently, billionaire investor <a href=\"https:\/\/finance.yahoo.com\/news\/ark-fund-unloads-silvergate-stake-131252888.html\" target=\"_blank\" rel=\"noopener\">Cathie Wood<\/a> almost entirely pulled out of it at the start of the new year.<\/p>\n<h2>Is Silvergate stock a buy?<\/h2>\n<p>According to a Wedbush Securities analyst, suspending Series A preferred stock dividend will make things more difficult for this financial infrastructure solutions firm in the long run.<\/p>\n<p>Reiterating his \u201cneutral\u201d rating on the Silvergate stock on Friday, David Chiaverini said:<\/p>\n<blockquote>\n<p>We believe this move could raise Silvergate\u2019s cost of capital down the road when Silvergate attempts to tap the capital markets for a future capital raise. Any new fixed income or preferred issuance will require a higher coupon.<\/p>\n<\/blockquote>\n<p>His $13 price objective on the stock suggests it lacks any upside whatsoever. Earlier in January, Silvergate Capital Corp said average deposits from digital asset customers tanked 39% to $7.3 billion in its fourth quarter as <a href=\"https:\/\/coinjournal.net\/news\/silvergate-plunges-after-crypto-meltdown-triggered-deposit-run\/\">Coin Journal reported here.<\/a><\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/sell-silvergate-stock-suspends-preferred-stock-dividend\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Silvergate Capital Corp suspends dividend on its preferred stock. Wedbush Securities analyst reiterates his neutral\u00a0rating on \u201cSI\u201d. Silvergate stock is currently down over 85% since mid-August. Silvergate Capital Corp ended 5.0% down on Friday after the crypto bank suspended dividend on its preferred [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":17000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16999"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=16999"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/17000"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=16999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=16999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=16999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}