FTX Collapse Led to Plummeting Deposits at Silvergate Capital: Here's What Investors Need to Know
When major crypto exchange FTX filed for bankruptcy in November, it was just one of several crypto-related companies going under in the past year. But FTX was one of the most prominent players in the space, and its collapse led to a crisis of confidence in cryptocurrencies.
These events sparked a run on the bank Silvergate Capital (NYSE: SI), which caters to digital currency customers. Silvergate has faced scrutiny for its relationship with FTX, and the stock dropped from $50 on Nov. 8, 2022, to $22 on Jan. 4, 2023.
When the bank announced preliminary fourth-quarter results last week, investors discovered that things were far worse than feared. Deposits at the bank had plummeted, and the stock fell another 43% overnight. So let's see where Silvergate could go from here.
Source Fool.com