Silvergate Shares Drop More Than 20% Due To Missed Earnings And Delayed Stablecoin Launch
The stock fell more than 20% on Tuesday as a result of Silvergate Capital announcing that its intentions to launch a stablecoin had been postponed.
For the third quarter of 2022, Silvergate reported quarterly earnings of $1.28 per share, falling short of analyst expectations of $1.45.
According to Silvergate Capital’s most recent quarterly report, the bank did witness an increase in customers using digital assets, but its payment system, the Silvergate Exchange Network (SEN), saw a 41% drop in US dollar transfers during the quarter.
In addition, the bank would postpone its own stablecoin launch, CEO Alan Lane said during the company’s earnings call on Tuesday.
In January 2022, Silvergate paid $182 million for the technology assets of Diem, Meta’s now-defunct stablecoin project, and revealed its own intentions to launch its own currency. The bank estimated that the integration of Diem assets into SEN by Silvergate would cost $30 million.
Lane stated stablecoins can be a “significant payment rail for consumers and businesses around the globe” at Silvergate’s first quarter earnings call in 2022.
However, Lane confirmed on Tuesday that the project won’t launch by the end of the year, though not because the technology is flawed. He stated that the business is closely collaborating with regulators to make sure the product is up to par when it is released.
Silvergate has stated that it intends to back its token with USD
The delay occurs as regulators all across the world begin to examine stablecoins more closely. Particularly US legislators have shown interest in setting audit guidelines for stablecoin reserves.
At the end of the trading day on Tuesday, Silvergate was trading at $55.32 per share. The stock has increased by almost 300% since its initial public offering in 2019 despite a year-to-date decline of more than 60%.
Lane observed that despite recent announcements from traditional financial companies expressing more interest in cryptocurrencies, executives’ excitement about the sector as a whole has not changed. However, these things take time to develop, Lane said.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
CoinCu News
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Silvergate Shares Drop More Than 20% Due To Missed Earnings And Delayed Stablecoin Launch
The stock fell more than 20% on Tuesday as a result of Silvergate Capital announcing that its intentions to launch a stablecoin had been postponed.
For the third quarter of 2022, Silvergate reported quarterly earnings of $1.28 per share, falling short of analyst expectations of $1.45.
According to Silvergate Capital’s most recent quarterly report, the bank did witness an increase in customers using digital assets, but its payment system, the Silvergate Exchange Network (SEN), saw a 41% drop in US dollar transfers during the quarter.
In addition, the bank would postpone its own stablecoin launch, CEO Alan Lane said during the company’s earnings call on Tuesday.
In January 2022, Silvergate paid $182 million for the technology assets of Diem, Meta’s now-defunct stablecoin project, and revealed its own intentions to launch its own currency. The bank estimated that the integration of Diem assets into SEN by Silvergate would cost $30 million.
Lane stated stablecoins can be a “significant payment rail for consumers and businesses around the globe” at Silvergate’s first quarter earnings call in 2022.
However, Lane confirmed on Tuesday that the project won’t launch by the end of the year, though not because the technology is flawed. He stated that the business is closely collaborating with regulators to make sure the product is up to par when it is released.
Silvergate has stated that it intends to back its token with USD
The delay occurs as regulators all across the world begin to examine stablecoins more closely. Particularly US legislators have shown interest in setting audit guidelines for stablecoin reserves.
At the end of the trading day on Tuesday, Silvergate was trading at $55.32 per share. The stock has increased by almost 300% since its initial public offering in 2019 despite a year-to-date decline of more than 60%.
Lane observed that despite recent announcements from traditional financial companies expressing more interest in cryptocurrencies, executives’ excitement about the sector as a whole has not changed. However, these things take time to develop, Lane said.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
CoinCu News
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