FTX drags down a new bank

The regional bank Silvergate Capital Corporation is the latest victim of the bankruptcy of the cryptocurrency exchange platform. Indeed, the establishment had the particularity of allowing its customers to make deposits in cryptocurrency, and many American individuals had jumped at the chance to secure their funds.

Unfortunately for them, the vertiginous fall of FTX dragged the entire cryptocurrency sector into its race and the customers of this bank played it safe by massively withdrawing their funds. If last September Silvergate Capital Corporation had $11.9 billion in crypto-currency deposits within its walls, it only held $3.8 billion in December 2022.

To meet this demand for money, the bank had no choice but to sell some of its securities and incur a loss of $718 million.

The share price was obviously impacted by this sudden decision, with a loss of 44% of the value of the share at the opening of the Stock Exchange on Thursday January 5, 2023 at 11.66 dollars. Since then, the action remains more or less at the same level.

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