Silvergate's Q2 Net Income Jumps 85%, Shares Spike
The crypto bank's stock rose about 22% in Tuesday's trading session.
Jul 19, 2022 at 11:18 a.m. UTCUpdated May 11, 2023 at 6:47 p.m. UTC
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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.
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UPDATE (19 July, 20:20 UTC): Updates share move references and adds commentary from the earnings conference call.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.