Crypto Bank Silvergate Suspends Dividend on Preferred Stock

The bank is looking to preserve capital as it navigates recent volatility in the crypto industry.

AccessTimeIconJan 27, 2023 at 1:10 p.m. UTC
Updated May 9, 2023 at 4:06 a.m. UTC

Crypto-focused bank Silvergate Capital (SI) suspended dividend payments on its preferred stock as it seeks to preserve capital.

The suspension affects its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, Silvergate said Friday. In response, its preferred stock (SI.PRA) is down over 26% on the day at $8.43. Meanwhile, common shares of the La Jolla, California-based bank are down around 6% at $13.26.

The bank said the decision reflects its "focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry."

Silvergate posted a grim set of results earlier this month, revealing that it suffered a loss of $1 billion in the fourth-quarter, culminating in a $949 million full-year loss.

Suffering contagion from the collapse of several crypto firms last year, which came to a head with the demise of crypto exchange FTX in November, Silverbank's stock lost around 90% of its value in 2022. This has continued in the early part of 2023, with the shares down a further 18% in January.

UPDATE (Jan. 27, 15:33 UTC): Adds updated share price for common and preferred stocks.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.