Why Shares of Silvergate Capital Rose Today

Shares of the cryptocurrency bank Silvergate Capital (NYSE: SI) rose nearly 6% today on a good day for the broader market and after the company reportedly issued one of its niche Bitcoin-collateralized loans in a large amount.

Silvergate is a bank, but the company is more known for its real-time payments system called the Silvergate Exchange Network (SEN), which enables multiple parties on the network to clear and settle transactions in real time around the clock. The platform is helpful for crypto exchanges and institutional traders interested in trading cryptocurrencies, because the U.S. payments system doesn't operate in real time.

Silvergate also uses its payments system to issue loans and lines of credit, called SEN Leverage, that are collateralized by Bitcoin. Earlier today, it issued a $205 million term loan to a subsidiary of the business intelligence company MicroStrategy (NASDAQ: MSTR), which also buys and holds Bitcoin.

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Source Fool.com