Loading...

Silvergate pauses preferred stock dividend amid crypto volatility

Crypto Bank Silvergate Suspends Dividend on Preferred Stock

Contents

Share link:

TL;DR

  • Silvergate paused its dividend on preferred stock to conserve capital.
  • This action affects the 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A.

Silvergate Capital has paused dividend payments on its preferred stock to conserve capital. This action affects the 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. Consequently, prior market trading saw Common shares of the La Jolla-based business fall by around 10%.

The crypto-focused bank declared that the choice was due to their “emphasis on keeping an extremely liquid balance sheet with a sound capital position as it faces recent turbulence in the digital asset sector.” Silvergate presented a dire set of results earlier this month, disclosing they had experienced a loss of $1 billion in the fourth quarter, resulting in an overall annual decline of $949 million.

Silvergate was heavily impacted by the wave of crypto company insolvencies that crested with FTX’s collapse in November, resulting in its stock price dropping around 90% through 2022 and declining further another 18% this January—leaving shareholders stunned.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

U.S. stocks dip while Bitcoin and gold make all-time highs
Cryptopolitan
Subscribe to CryptoPolitan