FAST FIVE: "Concerns Have Abated": FalconX Resumes Use Of Silvergate Network As Crypto Bank Amasses Large Short Interest
“Concerns Have Abated”: FalconX Resumes Use Of Silvergate Network As Crypto Bank Amasses Large Short Interest Like almost every other equity related to crypto this month, Silvergate Capital has been punished badly. As we noted last week, the stock has had a triumphant fall from grace, plunging from highs of $160 per share in early 2022 to lows near $24 over the last few trading sessions, as each day new ugly crypto-related headlines cross the wires.
But for Silvergate, which is known as the largest and most well known regulated crypto bank in the United States that also can allow customers to send cash in real time, it looks as though business may be returning to normal…somewhat.
It had suspended use of the network last week. “Concerns have abated,” the platform told its clients in a memo.
And we remain steadfast in that commitment to you, our customers.” In the interim, as Silvergate continues to weather the storm, its stock has amassed a massive 12% of its float short, even despite the plunge in shares, according to S3.
Recall, about a week ago Silvergate confirmed it had little exposure to the FTX blowup. Lane, Chief Executive Officer of Silvergate, said: “In light of recent developments, I want to provide an update on Silvergate's exposure to FTX. As of September 30, 2022, Silvergate's total deposits from all digital asset customers totaled $11.9 billion, of which FTX represented less than 10%.