According to SEC documents released Wednesday, EOS altcoin Brendan Blumer, founder of developer Block.One, cryptocurrency bank bought 9.3% of Silvergate, while Block.One bought 7.5%.
According to the documents, Blumer bought 2,934,537 shares of the crypto bank on November 16, while Block.One bought 2,363,186 shares.
According to the latest statistics from FactSet, the acquisition makes Blumer Silvergate’s largest shareholder.
Silvergate Allegedly Affected by the Crash of Cryptocurrency Exchange FTX
Block.one is a private blockchain company founded in 2017 by Brenden Blumer and Dan Larimer. The company is best known for developing the EOS.IO protocol, which it announced in 2017 and later released as open source software in 2018.
Silvergate’s shares were up nearly 5% on Wednesday afternoon in the US. Since the collapse of FTX, they’ve had a sharp drop in fear that Silvergate’s exposure to FTX will also place a heavy burden on the company.
FTX had a domino effect in the cryptocurrency market with its collapse.
FTX has at least $1 billion in deposits with Silvergate, but the bank says this represents less than 10% of its total deposits from all digital asset clients.
The company CEO also tried to reassure investors that the market volatility caused by the collapse of FTX would not affect the crypto banker’s business.
Speaking at the Oppenheimer Blockchain & Digital Assets Summit recently, CEO Alan Lane made the following statements:
“Suffice it to say that we have the liquidity and capital ratios to support volatility, whether deposits rise or fall.”
*Not investment advice.
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