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Crypto Bank Silvergate Suspends Dividend on Preferred Stock

The bank is looking to preserve capital as it navigates recent volatility in the crypto industry.

작성자 Jamie Crawley
업데이트됨 2023년 5월 9일 오전 4:06 게시됨 2023년 1월 27일 오후 1:10 AI 번역
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Crypto-focused bank Silvergate Capital (SI) suspended dividend payments on its preferred stock as it seeks to preserve capital.

The suspension affects its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, Silvergate said Friday. In response, its preferred stock (SI.PRA) is down over 26% on the day at $8.43. Meanwhile, common shares of the La Jolla, California-based bank are down around 6% at $13.26.

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The bank said the decision reflects its "focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry."

Silvergate posted a grim set of results earlier this month, revealing that it suffered a loss of $1 billion in the fourth-quarter, culminating in a $949 million full-year loss.

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Suffering contagion from the collapse of several crypto firms last year, which came to a head with the demise of crypto exchange FTX in November, Silverbank's stock lost around 90% of its value in 2022. This has continued in the early part of 2023, with the shares down a further 18% in January.

Read more: Coinbase Rally May Be a Selling Opportunity, Says Bank of America

UPDATE (Jan. 27, 15:33 UTC): Adds updated share price for common and preferred stocks.

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