Silvergate did not immediately respond to Cointelegraph’s request for comments. Moody’s Investors Service recently reacted to the bank situation, downgrading the ratings of Silvergate Capital and its bank to “junk,” with a negative outlook for both organizations. The company claims to have conducted due diligence at the time and monitored the situation on an ongoing basis. (NASDAQ:CLSK) : Stock quote, stock chart, quotes, analysis, advice, financials and news for share CLEANSPARK, INC. A Justice Department investigation is currently ongoing over the bank’s role in FTX businesses.Īccording to Silvergate, Alameda opened an account with the bank in 2018, before the launch of FTX. The company has been accused of “furthering FTX’s investment fraud,” while shareholders claim Silvergate violated the 1934 Securities Exchange Act. for allegedly aiding FTX on fraudulent activities, including lending and commingling user’s funds. The bank faces probes and lawsuits in the U.S. Federal Home Loan Banks System to mitigate effects of a surge in withdrawals following the collapse of crypto exchange FTX in November. Silvergate reportedly borrowed $3.6 billion from the U.S. authorities to cut ties with crypto firms This change lagged the S&P 500s daily loss of 1.11. According to a report from the United States Securities and Exchange Commission (SEC), Silvergate saw significant outflows of deposits during the period, which forced the company to seek wholesale funding and sell debt securities to maintain liquidity. Plug Power (PLUG) closed at 15.90 in the latest trading session, marking a -1.49 move from the prior day. 17, the bank announced a $1 billion net loss attributable to common shareholders in the fourth quarter of 2022. The bearish sentiment on Silvergate stems from its recent earnings report and legal battles the company faces over its relationship with bankrupt firms FTX and Alameda Research. A short seller profits from the price decline of a security.Īt the time of writing, Silvergate stock (SI) was down over 87% in the past twelve months. A short position means investors and traders believe the price of a security, such as a stock, will decrease in value. In F4Q20, revenue hit 1.95 million, indicating 16 year-over-year drop and missing the estimates by 0.17 million. Sales of BTC equated to proceeds of about 11.9 million. The company funded growth and operations through the sale of 624 bitcoins in January 2023 at an average of approximately 19K per BTC. The Financial Industry Regulatory Authority (FINRA) collects and publishes twice a month short interest positions of all equity securities. The news followed the release of the company’s latest quarterly results. Shares of CleanSpark ( NASDAQ: CLSK ) rose +7.9 on Thursday after the company announced that it mined 697 bitcoins in January, up 50 from December 2022. is the second-most-shorted stock in the United States, with over 72.5% of its shares shorted, according to the latest Short Interest Reporting from Feb.
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