Crypto-Bank Silvergate Details its Own Implosion, Much of its Equity Capital Wiped Out. I’m Waiting for the FDIC to Show Up | Wolf Street

Silvergate Capital, which owns Silvergate Bank, is a tiny bank holding company that had gone public via IPO in November 2019, and got into crypto to become a big crypto bank, serving crypto companies, such as FTX, which started to implode as part of the crypto implosion. Today, it reported on a preliminary basis some details of its crypto-disaster in Q4, including huge losses on the sale of securities that it had to sell to deal with a massive run on the bank. It will report actual results later this month.

The FDIC, which insures dollar-deposit accounts at Silvergate Bank, is likely getting very antsy because today, Silvergate reported a laundry list of Q4 losses and write-downs that could wipe out most of its equity capital. Typically, when the FDIC takes over a bank, shareholders get bailed in first.

And the shares [SI], a hero in my pantheon of Imploded Stocks since last year, kathoomphed another 43% at the moment, and are down 95% from their high in November 2021 (price data via YCharts):

Crypto-Bank Silvergate Details its Own Implosion, Much of its Equity Capital Wiped Out. I’m Waiting for the FDIC to Show Up | Wolf Street