JAKARTA Silvergate is a crypto-friendly bank that often serves digital asset companies. Recently, the bank announced a tremendous loss in the last quarter of 2022.
As a public company founded in 2019, Silvergate Capital is known for its handling of digital assets and provides services for exchanges, institutions, and traders to exchange crypto for fiat currency. In its latest announcement, the bank said it lost $1 billion in the last three months in the bearish market phase last year.
"The net loss attributable to ordinary shareholders for the quarter is 1.0 billion dollars, or a loss of 33.16 dollars per common share, compared to a net profit of 40.6 million dollars, or 1.28 dollars per diluted share, for the third quarter of 2022, and a net profit of 18.4 million dollars, or 0.66 dollars per diluted share, for the fourth quarter of 2021," the announcement read.
However, compared to throughout 2022, the net loss was slightly more under control, according to Silvergate. "The net loss attributable to ordinary shareholders for the year ending December 31, 2022 was 948.7 million dollars, or 30.07 dollars in losses per share, compared to a net profit of 75.5 million dollars, or 2.91 dollars per diluted share for the year ending December 31, 2021," quoted from DailyHodl.
Despite the heavy losses in the fourth quarter, the bank exchange network did experience a slight increase in transactions over the same period. "The Silvergate Exchange Network ('SEN') handled 117.1 billion US dollars in the fourth quarter of 2022, an increase of 4 percent compared to 112.6 billion dollars in the third quarter of 2022, and a 47 percent drop compared to $219.2 billion in the fourth quarter of 2021."
According to Silvergate Capital CEO Alan Lane, "Although we are taking firm action to navigate the current environment, our mission has not changed. We believe in the digital asset industry, and we remain focused on providing added-valued services for our core institutional customers. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position."
Although the market has been struggling, Silvergate told The Wall Street Journal earlier this month that it still believes in cryptocurrencies, echoing comments by Silvergate Capital CEO Alan Lane stating that the Silvergate mission is unchanged and they still believe in the digital asset industry.
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