Why Shares of Silvergate Capital Are Falling Today
Shares of the crypto bank Silvergate Capital (NYSE: SI) had fallen roughly 10% as of 11:25 a.m. EDT after the company reported earnings results for the third quarter of the year.
The bank reported diluted earnings per common share of $0.88 and total revenue of $51.7 million. Both numbers beat analysts' estimates for the company in the quarter.
However, Silvergate is not like a traditional bank because it operates heavily in the cryptocurrency space. The bank has built a payments platform called the Silvergate Exchange Network (SEN), which allows two parties on the network to clear transactions instantaneously. This is particularly attractive for institutional traders and cryptocurrency exchanges because cryptocurrencies trade nonstop.
Source Fool.com
