Why Shares of Silvergate Capital Are Falling Today
Shares of the cryptocurrency bank Silvergate Capital (NYSE: SI) traded roughly 7.5% lower as of 1:33 p.m. ET today after a Wall Street analyst assigned the stock an "equal weight" rating.
Morgan Stanley analyst Manan Gosalia attributed the rating due to Silvergate's strong correlation to crypto prices, which have struggled in volatile markets. Gosalia noted, however, that the bank is a big beneficiary of rising interest rates.
"Silvergate is the most asset-sensitive bank in our coverage, with a 30% benefit to net interest income from the first 100-bp (1%) increase in interest rates," Gosalia wrote in a research note.
Source Fool.com