Cryptocurrency bank Silvergate Capital (NYSE:SI) reported dismal fourth-quarter 2022 results. The company said it witnessed “significant outflows of deposits” during the quarter as the confidence of its customers shook on news of the collapse of several crypto exchanges, including FTX.
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Net interest income of $53.7 billion missed the consensus estimates by $4.1 million but increased 33.6% year-over-year. Also, the company’s adjusted earnings came in at $0.48 per share, lagging behind the Street’s expectations of $0.66 per share.
Furthermore, the Silvergate Exchange Network handled $117.1 billion of U.S. dollar transfers in the fourth quarter, down 47% from the same period last year. Deposits tanked 56% year-over-year to $6.3 billion.
Nevertheless, Silvergate’s digital asset customers in Q4 increased to 1,620 from the 1,381 reported on December 31, 2021.
Silvergate CEO Alan Lane said, “We believe in the digital asset industry, and we remain focused on providing value-added services for our core institutional customers. To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.”
Is SI a Buy?
The consensus among analysts is a Hold based on three Buys, five Holds, and two Sells. The average SI stock price target of $17.20 implies 29.03% upside potential to current levels.
