What Caught Our Attention in the Investment World? – Week of March 6-10, 2023

By Kuldip K. Ambastha

During the past trading week, the stock of Silvergate Capital Corporation (SI), a banking platform focused on the cryptocurrency industry, saw five straight days of negative returns – the largest of which was a sharp -42.2% decline on Thursday, March 9, 2023. Since 2022, Silvergate has been faced with clients withdrawing money to weather the storms seen in the cryptocurrency segment. Eventually, the withdrawals led to losses taken from a rapid fire-sale of securities administered to meet client withdrawal needs. Silvergate had tried to avoid a shutdown, but in the end had to stop its banking activities and liquidate its lending arm. Silvergate was once hailed as an innovative bank, but now is yet another failed institution brought down by a run on the bank by its clients.

Keywords – Silvergate Capital Corporation, Silvergate Capital Corp., Silvergate Capital, Silvergate, SI, banking, bank, cryptocurrency, clients, securities, withdrawals, lending, innovative, failed, run on the bank, bank run.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SI.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.




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