Silvergate Shoots Up 11%, Coinbase Dips And MicroStrategy Trades Flat

Key Points:

• Silvergate skyrocketed, while those of Coinbase declined as the Nasdaq 100 rose.
• Last week, Silvergate shared its fourth-quarter earnings, showing a $1 billion loss. Despite the loss, some analysts remain firm on the stock.
• As the regulatory environment and the reaction surrounding FTX and other crypto-focused insolvencies continue to develop, analysts say the price decline should stabilize from present levels.

After the market opened, shares of Silvergate skyrocketed, while those of Coinbase declined as the Nasdaq 100 rose.

According to Nasdaq data, the cryptocurrency-friendly bank’s shares were up 11% to $15.25 as of 11:30 a.m. EST. After the market closed on Friday, Silvergate disclosed that the bank’s involvement with the recently insolvent cryptocurrency lender Genesis involved deposits totaling less than $2.5 million.

Last week, Silvergate shared its fourth-quarter earnings, showing a $1 billion loss. Despite the loss, some analysts remain firm on the stock.

“No other bank could survive a 70% reduction in deposits and still have positive book value, more cash than core customer deposits, and be well-capitalized,” KBW analysts wrote in a recent report.

Overall, KBW continues to believe that Silvergate is stabilizing and has revised its price target from $38 to $25. The “mild crypto winter” is one of the presumptions upon which the investment bank’s view is based.

As the regulatory environment and the reaction surrounding FTX and other crypto-focused insolvencies continue to develop, analysts say the price decline should stabilize from present levels.

MicroStrategy was flat at roughly $240 in other markets. Shares of Coinbase fell 1.3% to trade around $54.40, while Jack Dorsey’s Block was trading above $79, up 3.8%.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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