‘Worst-case scenario’ coming to pass for Silvergate, says Wells Fargo

Silvergate Capital provided an early look at its Q4 results which reflected the "significant pressure from the broader stress" in crypto as well as the strategic moves undertaken to restructure its business model, Wells Fargo analyst Jared Shaw tells investors in a research note. The "worst-case scenario seems to have come to pass," as significant continued pressure from digital deposit outflows has forced the sale of securities at a loss, says the analyst. He believes that after the restructuring moves, the bank remains in a strong capital position. Shaw has an Equal Weight rating on Silvergate.