Silvergate's Q2 Net Income Jumps 85%, Shares Spike

The crypto bank's stock rose about 22% in Tuesday's trading session.

AccessTimeIconJul 19, 2022 at 11:18 a.m. UTC
Updated May 11, 2023 at 6:47 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto bank Silvergate Capital (SI) said Tuesday that its second-quarter net income rose 85% to $38.6 million from $20.9 million in the same quarter a year ago.

  • Shares surged 22% Tuesday, closing Tuesday's session at $79.46 apiece, after the stock tumbled to an 18-month low of $52.61 on July 1.
  • The second quarter net income rose 41% to $1.13 per share versus $0.80 in the same quarter of last year.
  • The Silvergate Exchange Network handled $191.3 billion in U.S. dollar transfers in the second quarter, a 34% increase from the first quarter and a 20% decline from the second quarter of last year.
  • The number of the bank's digital currency customers rose to 1,585 as of June 30 from 1,503 at the end of March.
  • Fee income from cryptocurrency customers decreased to $8.8 million in the second quarter from $8.9 million in the first quarter and from $11.3 million in the second quarter of 2021.
  • Silvergate has $15.8 billion in assets, with no change since its last financial report.
  • Revenue rose 33% to $79.8 million in the second quarter from the first quarter and was up 88% year over year.
  • "Silvergate had another strong quarter in light of the challenging backdrop facing the broader digital currency ecosystem," Silvergate CEO Alan Lane, said in a press release. "I am proud of our results as we achieved record net income available to common shareholders of $35.9 million and saw some of the highest daily dollar transfer volumes ever on the Silvergate Exchange Network."
  • During its earnings call on Tuesday, Silvergate said that the launch of its Diem Stablecoin remains on track for this year, and they aren't seeing a slowdown in regards to institutional interest for digital assets, noting that the recent industry rout may provide an opportunity for some investors.
  • In April, Lane said that the company is willing to "entertain more possibilities" in the bitcoin lending market after it issued a $205 million bitcoin-backed loan to MicroStrategy, a software company that holds a large amount of bitcoin in its treasury.

UPDATE (19 July, 20:20 UTC): Updates share move references and adds commentary from the earnings conference call.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.