• Silvergate Bank a subsidiary of Silvergate Capital Cooperations suffered a net loss of $1 billion.
• Silvergate is taking decisive action to navigate the current environment, but its mission in the crypto industry has not changed.

Silvergate Bank, a crypto-focused bank, suffered a net loss of $1 billion in the fourth quarter of 2022. The loss was driven by a combination of factors, including the collapse of the crypto exchange FTX, which led to a bank run at Silvergate.

In the wake of the FTX collapse, customers withdrew $8.1 billion from Silvergate, forcing the bank to sell assets at a loss of $718 million. The bank also reported an impairment charge of $134.5 million related to the sale of $1.7 billion worth of securities.

The loss caused Silvergate’s stock price to plummet from $50 to $15.37 in December. The bank also laid off 200 employees, or 40% of its staff, in an effort to cut costs.

Despite the loss, Silvergate CEO Alan Lane said that the bank is still committed to the crypto industry. He said that the bank has enough funding to sustain a period of transformation and that it is still well-positioned to serve the crypto community.

Lane also said that Silvergate is taking steps to mitigate the risk of future bank runs. The bank has increased its liquidity and is working to diversify its customer base.

The loss at Silvergate is a sign of the broader turmoil in the crypto industry. The collapse of FTX and other major players has shaken investor confidence, and the market is now in a state of flux. It remains to be seen how Silvergate and other crypto banks will weather the storm.

However, Lane’s comments suggest that Silvergate is confident that it will emerge from the current crisis. The bank has a strong track record and a commitment to the crypto industry. If it can weather the current storm, it is well-positioned to be a major player in the future of crypto.