Silvergate Capital Corporation and its subsidiary Silvergate Bank announced a $1 billion net loss in the fourth quarter of 2022, according to a company report.
The net loss attributable to common shareholders for the quarter stood at $33.16 per common share.
Silvergate’s fourth quarter report also disclosed a decrease in digital asset customers and a decrease in digital asset customer-related fee income.
Silvergate mitigative actions
In light of the harsh crypto winter of 2022 featuring over-leveraged lending and high-profile bankruptcies, Silvergate to mitigative actions “to maintain cash liquidity,” according to the report.
Silvergate CEO Alan Lane stated that the company’s mission had not change despite the change in dynamics.
“We believe in the digital asset industry, and we remain focused on providing value-added services for our core institutional customers. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.”
The mitigative actions included “utilizing wholesale funding and selling debt securities,” in addition to the company making “the difficult decision to substantially reduce its workforce,” according to the report.
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