The company sold assets at a steep loss and fired 40% of its staff to cover losses
Silvergate Capital slumped on Thursday after the bank said the crypto industry’s meltdown triggered a run on deposits, prompting the company to sell assets at a steep loss and fire 40% of its staff.
“In response to the rapid changes in the digital asset industry during the fourth quarter, we took commensurate steps to ensure that we were maintaining cash liquidity in order to satisfy potential deposit outflows, and we currently maintain a cash position in excess of our digital asset related deposits,” CEO Alan Lane said in the statement.
The company said it “still believes in the digital-asset industry”, and is committed to maintaining a “highly liquid balance sheet with a strong capital position”. Silvergate’s total deposits from digital-asset customers declined to $3.8bn at the end of the fourth quarter. It said the workforce reductions amount to about 200 positions.Silvergate once saw the crypto industry as giving it a huge growth opportunity.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silvergate shares tumble on report of $8bn run during crypto meltdownThe company sold assets at a steep loss and fired 40% of its staff to cover losses
Read more »
Car bombs kill 35, burn houses in central Somalia: Police - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Two car bombs detonated by al Shabaab militants in central Somalia on Wednesday killed at least 35 people, including eight members of a single family, and wounded 40 more, a senior police officer said.
Read more »
POWER CRISIS: Eskom operator hauled to court after probe into theft of diesel worth R500,000Eskom’s struggle to keep the lights on is made considerably worse by the theft of diesel fuel. A 40-year-old Atlantis man was allegedly involved in the latest incident of theft at the Ankerlig power station outside Cape Town.
Read more »
COMPANIES: Naspers and Prosus pocket R122bn from Tencent share disposalNaspers and its Amsterdam-based subsidiary have announced an update on their convoluted open-ended repurchase programme, through which they aim to unlock ‘immediate value’ for shareholders.
Read more »
Share prices higher as inflation data offers hope ahead of Fed policy minutesInvestors are looking for clues on whether more US monetary policy tightening is likely
Read more »