Crypto Bank Suspends Silvergate Dividend Payments!

to customers cryptocurrency The bank, which provides focused services, announced that it is suspending the dividend payments of investors who own preferred stock in order to protect its equity.

silvergate In the official announcement made today, he stated that the suspension process is applied to preferential bills that receive fixed-rate dividends. After the announcement, preferred stocks fell by 25% to $8, while common stocks fell 6% to $13.26.

The authorities explained the reasons for stopping the dividend distribution as follows:

“Due to the continued volatility in the digital asset sector, we want to maintain our strong capital. Providing liquidity is our main priority.”

This move by the Silvergate bank, which provides digital asset services, worried investors. Crypto community, on social media “Another crypto startup going bankrupt?” He started arguing the question.

Silvergate Lost $1 Billion in the Last Quarter

With the announcement made in the middle of the month, the US-based bank shared the company’s 2022 4th quarter balance sheet through official channels. With a net income of $18 million in the third quarter of the year, the bank announced a loss of $1 billion in the last three months of the year.

Silvergate bank recorded a net income of $75.5 million in 2021, with a total annual loss of $949 million for 2022.