Recent data shows that Silvergate Bank, a cryptocurrency-friendly financial institution, has become the shortest stock in the United States, according to the Financial Industry Regulatory Authority. Silvergate shares surged on Tuesday after Citadel Securities was found to hold a 5.5% stake in the bank, according to a Schedule 13G filing with the Securities and Exchange Commission (SEC).
With Silvergate shares the most shorted on Wall Street, Citadel Securities claims a 5.5% stake in the crypto-friendly bank
According to current market data, shares of crypto bank Silvergate have fallen 85.62% in the past six months. In addition, as of February 9, 2023, the Financial Industry Regulatory Authority reports that Silvergate Capital shares are the shortest shares in the country.
However, during the last month, silvergate shares it is up 14.48% against the US dollar and there has been some improvement in price growth in 2023 compared to 2022.
Short Interest Reporting also indicated that as of January 31, 2023, 72% of Silvergate shares were being used to sell short. In recent months, Silvergate has been dealing with negative news about the bank’s relationship with the now-defunct Alameda Research and FTX.
The company’s fourth-quarter 2022 earnings report showed a $1 billion loss. However, the recent rally in the cryptocurrency market in 2023 has helped to some extent, and an SEC filing by Citadel Securities shows an investment in the company.
A filing by the Securities and Exchange Commission (SEC), Schedule 13G, shows that Citadel Securities owns more than 1.7 million shares of Silvergate, worth $25.9 million at Tuesday’s exchange rate. It is currently unknown why Citadel Securities has a 5.5% stake in the La Jolla-based bank. In September 2022 it was revealed that Citadel Securities is working with Fidelity Digital Assets and Charles Schwab Corp. on a cryptocurrency exchange called EDX Markets.
Since the Citadel Securities news, Silvergate shares have risen 4.66% against the dollar, holding above the $15 per share range. Data it further shows that Susquehanna Advisors Group owns 7.5% of Silvergate’s shares, or 2.36 million shares.
What do you think of Citadel Securities claiming a 5.5% stake in Silvergate Bank? Let us know what you think about this topic in the comments section below.
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