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- Silvergate Capital has lost 20% in its stock price.
- Number of virtual asset users has increased on their network.
- The company took over Meta’s Diem assets in January 2022.
A Look at Some Numbers in Q3 2022
Silvergate Capital has released their latest quarterly report and few numbers are looking okay according to the current market conditions. The organization has already witnessed a fall of 20% in their stocks and is uncertain when the market will take pace and help it regain its position. The report also shed light on its rising net income.
According to the report, the company gained 12% in its third quarter earnings to reach 43.3 Million USD in contrast to their previous quarter earnings equalling 38.6 Million USD. Common shareholder earnings rose from 23.5 Million USD in Q3 2021, to 40.6 Million USD in Q3 2022.
Looking at the digital asset consumers of the company, the number increased from 1,585 users in June 2022 to 1,677 in September 2022. This comes as a surprise as the crypto market is down to its knees in comparison to its all time high in November 2021 when it topped 3 Trillion. Many crypto assets saw their all time highs including Bitcoin and Ethereum.
Silvergate’s USD transfers have declined to 112.6 Billion USD in Q3 2022 from 191.3 Billion USD in Q2 2022. The company offers Silvergate Exchange Network users to cash their crypto holdings. In January 2022, the organizations took over Diem assets, a failed stablecoin project by Meta. Silvergate planned to work on its own virtual currency but delayed it due to multiple reasons.
One of the reasons remains the LUNA ecosystem collapse, which caused the crypto market to fall like a house of cards to give rise to the crypto winter. Also, crypto regulations across the globe are getting tighter, which may affect the project considerably. The Securities and Exchange Commission (SEC) called crypto the Wild West in the investment sector due to heavy risk of financial losses.
Apart from this, banking stocks dealing in traditional business Goldman Sachs (GS) and Morgan Stanley (MS) were suffering in high risk activities like IPOs, causing a decline in their revenue. Meanwhile banks dealing on the main street like Bank of America (BAC), JPMorgan (JPM), Wells Fargo (WFC) gained in their numbers.
World market is heavily influenced by the Russian invasion on Ukraine, as the war has affected the supplies of commodities and services to other nations. The attackers are not likely to back-off anytime soon, which may keep the market this way. The inflation is expected to stay at 8% by the end of 2022, but is likely to fall by 4.5% by 2023’s end according to Kiplinger, an American financial advisor.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
