- Deposits from digital currency companies declined for the 2nd quarter in a row largely due to a strong pullback in deposit balances from its exchange customers
- Earnings took a hit as a result of a reduction in interest earning assets
- Management concerns persist given past cease-and-desist coupled with the recent departure of the CFO
- Upside potential is tangible due to Silvergate’s strong customer pipeline coupled with positive trends seen from exchanges and crypto funds
Silvergate Bank quietly posted an updated S1 on May 17 in preparation for its upcoming IPO as it makes headway with its digital currency initiative.
Founded in La Jolla, Calif. in 1988, Silvergate began as a traditional commercial bank, but started exploring the idea of serving the digital currency industry in 2013.