Home
News
The bank known for its affection towards crypto has seen an upsurge in its stock trading price which is beyond what experts had assumed.
This week the shares of Silvergate Capital have surged upwards by adding almost 18% as per the data. The stock price was still up by 13.2% till 2:20 pm ET on friday. The earnings that the financial institution generated was beyond the expectations of experts and several price targets that were set by analysts. This instance played an important role for driving the crypto-friendly bank to perform so well.
Net income of the first quarter of Silvergate Capital reported about $27.4 million that surged by about 115% year over year. These factors resulted in earnings per share or EPS to go about $0.79 that climbed by 44%. While putting them in numbers in the same context, consensus estimates of analysts were saying that the net income would stay around $16.1 million and EPS by $.0.45.
Also Read: Is the reason behind Silvergate Capital’s growth its stablecoin initiative?
Although for the bullish stock price of the bank, there could be other reasons. For instance look at the customer base of crypto users that grew up to 1.503 that is roughly about 36% year over year, meanwhile average deposits of digital currency users increased by $14.7 billion while rising by 11%.
As the Silvergate Exchange Network (SEN), which is payment handling platform of the bank, handled over $142.3 billion transfer, which is although 15% down year over year, the board has declined in cryptocurrency since this year’s beginning that pushed towards value of transactions.
However, despite its blown out financial performance, Silvergate Capital received slight love from Wall Street. Analyst George Sutton raised Silvergate Capital’s target price from $150 to $160 while keeping a buy rating on the stock. The potential upside was represented for investors of 23% over the upcoming year when compared to closing price on Thursday. Analys Sutton cited the enviable and potentially dominant role of Silvergate in the crypto trading market that particularly followed the stablecoin infrastructure acquisition of Diem.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
