Why Shares of Silvergate Capital Are Up Today

Shares of Silvergate Capital (NYSE: SI) popped as much as 15% earlier this morning after an analyst initiated coverage of the cryptocurrency bank and assigned a bullish rating.

J.P. Morgan analyst Steven Alexopoulos initiated coverage of Silvergate with an overweight rating. Alexopoulos also set a $300 price target for the stock, which implies roughly 43% upside from the current price. The new price target is the highest set thus far by an analyst.

Silvergate Capital has built a real-time payments system called the Silvergate Exchange Network (SEN), which helps facilitate cryptocurrency trading because it can clear payments between two parties on the network instantly and at any time. This has led to institutional traders and cryptocurrency exchanges flocking to the network because cryptocurrencies trade around the clock. SEN now has more than 1,300 clients on the network.

Source Fool.com