• Silvergate reported a net loss of $948 million due to customer withdrawals of over $8 billion.
• The bank has over $11 billion in total assets as of December 31, 2022, with $6 billion in deposits.
• Silvergate Exchange Network (SEN) saw a 4% spike in its dollar transfers in Q4 2022 and recorded 1,620 crypto customers by the end of 2022.
The financial institution Silvergate recently released data related to its fourth quarter of 2022. This was in response to the collapse of one of its partners, the crypto exchange FTX, and the subsequent rumors of Silvergate’s potential bankruptcy. However, the bank has sufficient assets and liquidity to continue its operations, with over $11 billion in total assets and $6 billion in deposits as of December 31s, 2022.
Despite this, Silvergate did experience significant losses across the board. Deposits fell by over $8 billion while the company recorded a net loss of $948 million. The bank’s flagship product, the Silvergate Exchange Network (SEN), saw a 4% spike in its dollar transfers in Q4 2022, but still recorded a decrease of around $250 million in its year-to-year transaction volume. Crypto customers also followed the trend, as the collapse of FTX and the bankruptcy of other major crypto companies triggered a widespread “confidence crisis”. By the end of 2022, the financial institution recorded 1,620 crypto customers compared to 1,677 in September 2022.
Despite these losses, Silvergate’s data shows that it is financially stable and capable of continuing its operations. The company’s efforts to stay ahead of the curve in the crypto industry have paid off, as its customers have remained loyal and its operations have remained consistent. Moving forward, Silvergate is likely to continue to be a major player in the crypto industry, providing customers with the security and convenience they need to help them succeed in the space.