Cryptocurrency bank struggles to gain traction! Silvergate posts a $1 billion loss in the fourth quarter, far exceeding its past profit-making capabilities.

According to CoinDesk, cryptocurrency-friendly bank Silvergate Capital reported a net loss attributable to shareholders of $1 billion in the fourth quarter of 2022, compared to a net income of $18 million in the same period in 2021 and $40.6 million in the third quarter of 2022. The loss in the last quarter ultimately led to a full-year loss of approximately $949 million for Silvergate Capital, whereas its net income in 2021 was $75.5 million.

According to a report by CoinDesk, crypto-friendly bank Silvergate Capital reported a net loss attributable to shareholders of $1 billion in the fourth quarter of 2022, compared to a net income of $18 million in the same period in 2021 and $40.6 million in the third quarter of 2022. The last quarter's loss resulted in Silvergate Capital's annual loss of approximately $949 million, whereas its net income in 2021 was $75.5 million.

In early January 2023, according to The Wall Street Journal, crypto-friendly bank Silvergate processed $8.1 billion in withdrawals following the collapse of FTX.

In mid-January, Silvergate Capital revealed that it had recorded a $196 million impairment charge in the fourth quarter of 2022, reducing the value of the intellectual property and technology acquired from Diem Group early last year. This adjusted figure, which is 98% of the $200 million paid for acquiring these assets, reflects a substantial loss.

This article is authorized and reprinted from Foresight News, a Chinese content platform in the Web3 vertical domain, committed to providing an objective and neutral perspective on the Web3 world.

Recap: Crypto bank Silvergate's financial report shocker, stock price drops 42% to IPO price

Podcast: Crypto bank Silvergate runs aground after the FTX incident, will traditional banks dare to get involved?