Silvergate Ends January With 72.57% Of Its Shares Shorted, Reports Short Interest

Key Points:

• Silvergate Capital Corp., a cryptocurrency bank, is the second most-shorted company in the United States, with 72.57% of its shares shorted.
• Silvergate stock (SI) is down nearly 88% in the last year when it revealed a relationship with insolvent enterprises FTX and Alameda Research.

According to the most recent Short Interest Reporting, cryptocurrency bank Silvergate Capital Corp. is the second most-shorted stock in the United States, with more than 72.5% of its shares float shorted.

The Financial Industry Regulatory Authority (FINRA) gathers and publishes short interest positions in all equity securities twice a month. A short position indicates that investors and traders expect the price of a security, such as a stock, will fall. A short seller earns from a security’s price drop.

Silvergate stock (SI) is down nearly 88% in the last year at the time of writing. Silvergate’s adverse sentiment derives from its recent financial report as well as court challenges regarding its relationship with insolvent enterprises FTX and Alameda Research.

As Coincu reported, the bank announced a $1 billion net loss attributable to common shareholders in the fourth quarter of 2022 on January 17. According to a Securities and Exchange Commission (SEC) report, Silvergate saw significant outflows of deposits over time, forcing the company to seek wholesale funding and sell debt securities to maintain liquidity.

Silvergate reportedly borrowed $3.6 billion from the Federal Home Loan Banks System in the United States to offset the consequences of a surge in withdrawals following the November collapse of crypto exchange FTX.

The agreement between Silvergate and the FTX exchange “further integrates crypto market risk into the regular banking system.” The letter was followed by an elaborate questionnaire designed to elicit further information about the link between FTX, Alameda Research, and the bank.

According to Silvergate, Alameda opened an account with the bank prior to the debut of FTX in 2018. The corporation claims to have carried out due diligence at the time and has been monitoring the situation on an ongoing basis.

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

Thana

Coincu News