Crypto bank Silvergate Capital (SI) reported a net loss of $1 billion for the fourth quarter on Tuesday, compared with a net income of $40.6 million for the third quarter and net income of $18 million for the same period a year earlier.
For all of 2022, the company posted a loss of $949 million, compared with net income of $75.5 million in 2021.
Silvergate's results for the latest quarter were foreshadowed at the start of January when the company said it had $8.1 billion in outflows of customers' deposits of digital assets during the period and that it had slashed 40% of its staff. The firm expects to incur restructuring charges of $8.1 million for the layoffs, the majority of which it will recognize this quarter.
Furthermore, Silvergate recorded a $134.5 million impairment charge related to $1.7 billion of securities it expects to sell this quarter as it attempts to counter the huge amount of outflows at the end of last year.
Silvergate was rocked by contagion from the collapse of crypto firms last year that came to a head in November with the demise of crypto exchange FTX.
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.