Crypto Bank Silvergate Bucks Market Rally as FTX Exposure Is Questioned
Silvergate shares were down about 7% while other crypto-linked stocks rallied Tuesday.
Shares of crypto-focused bank Silvergate Capital (SI) were down about 7% Tuesday despite the broader rally in crypto-linked stocks and the overall market.
Other crypto stocks including Coinbase (COIN), MicroStrategy (MSTR) and Marathon Digital (MAR) are all gaining while the Nasdaq Composite is up over 2%.
Late Friday, the market reacted positively to Silvergate’s update on its exposure to FTX, though that momentum has faded. Silvergate told investors Friday that FTX's deposits with Silvergate represent less than 10% of the $11.9 billion in total deposits from all digital asset customers.
However, an early and strong skeptic of all things SBF, Marc Cohodes told Hedgeye on Tuesday that he's shorting Silivergate, noting that FTX making up such a large portion of Silvergate's deposit base is a big red flag.
Silvergate wasn't available to comment on the story.
Meanwhile, Signature Bank (SBNY) said early Tuesday that its deposit relationship with FTX and their related companies is under 0.1% of the bank’s overall deposits as of Nov. 14. Its shares rose over 10%.
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