Ken Griffin's Citadel Securities Discloses 5.5% Stake in Crypto Bank Silvergate

Citadel's move is based on its market making positions, rather than a directional call on the stock, according to a source familiar.

AccessTimeIconFeb 14, 2023 at 3:51 p.m. UTC
Updated May 9, 2023 at 4:08 a.m. UTC
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Market maker Citadel Securities has disclosed a 5.5% stake in Silvergate Capital (SI) worth about $25 million.

According to a Form 13G filed with the Securities and Exchange Commission (SEC), Citadel Securities is now the owner of roughly 1.73 million shares or a 5.5% stake in Silvergate, valued at $25 million based on Monday's closing price of $14.71.

A person familiar with Citadel Securities told CoinDesk that the filing is a result of the firm's options market making activities rather than a directional investment or stake in Silvergate. Citadel Securities makes markets in more than a million individual options at any time. For 13G filings, options positions are calculated based on long call positions, regardless of any offsetting short calls or puts, explained the person.

Meanwhile, trading firm Susquehanna also reported in a filing that it bought about 2.37 million shares, or a 7.5% stake, in Silvergate. The investment would be valued at about $35 million, based on Monday's closing price.

Alongside a modest rally in the price of bitcoin, Silvergate shares are higher by just over 5% on Tuesday at $15.53. Shares are down about 87% over the past year.

The moves come after BlackRock said it boosted stake in Silvergate last month. A filing showed that the asset management giant had a 7.2% stake in Silvergate Capital as of Dec. 31, as oppose to a 6.3% stake, reported a year earlier.

UPDATE (Feb. 14, 2023, 17:06 UTC): Adds Susquehanna stake, additional context.

UPDATE (Feb. 14, 2023, 17:58 UTC): Adds more context about Citadel's trade.

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Brandy Betz

Brandy covered crypto-related venture capital deals for CoinDesk.


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