Silvergate Capital Corp (NYSE: SI) experienced a significant increase of 52.21%, with its value rising from 1.7200 to 2.3100. The stock’s prior close stood at 1.1300, opening at 1.1200. Bid and ask prices were both 1.6900, with volumes of 1000 and 2200 respectively. The stock’s daily range extended from 1.1000 to 2.1700, while the 52-week range varied between 1.1000 and 162.6450. Trading volume reached an impressive 140,986,700, far exceeding the average volume of 14,838,315.
As one of the three U.S. banks that recently faced collapse, Silvergate had operated a real-time payment network enabling instantaneous transactions in U.S. dollars for participants. This feature proved beneficial for cryptocurrency trading and associated transactions, considering the typical delays in the U.S. banking system.
However, when uncertainty about FTX arose, Silvergate encountered challenges due to FTX’s status as a key client. Significant deposit withdrawals in late 2022 and early 2023 forced the bank to sell bonds at a substantial loss, negatively impacting shareholder equity. Silvergate now faces potential regulatory issues as well. While the exact cause of the stock’s volatile fluctuations remains unknown, factors such as short squeezes due to heavy shorting prior to ceasing operations could be involved.
Unverified social media rumors indicate the company may have the opportunity to sell technological assets like its payment network and Diem stablecoin technology, originally acquired from Meta Platforms. This development could improve liquidation prospects for preferred and common shareholders. Earlier this month, Wedbush analysts estimated Silvergate’s liquidation value to be $5 per share.
Noteworthy banking stocks to watch include JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corporation (NYSE: BAC), Wells Fargo & Company (NYSE: WFC), Citigroup Inc. (NYSE: C), The Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), U.S. Bancorp (NYSE: USB), Truist Financial Corporation (NYSE: TFC), The PNC Financial Services Group, Inc. (NYSE: PNC), and The Bank of New York Mellon Corporation (NYSE: BK).
