Silvergate Capital Corporation has announced that it still has stable crypto deposits in the second quarter.
Total deposits in the second quarter were $13.3 billion. This is down from $14.7 billion in the previous three months. Earnings per share rose to $1.12, beating Wall Street estimates of $0.84.
Investors remained optimistic despite the drop in deposits. Eight out of nine investors surveyed by FactSet Research Systems designated the stock as BUY. Total cumulative net income in the second quarter was $38.6 million.
Silvergate is a regulated, institutionally focused bank whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). This bank is a member of the Federal Reserve and holds the charter of the state of California.
The bank has managed to grow its customer base from 1503 at the end of March to 1585 at the end of June. Meanwhile, in Q1 2022, fee income dropped from $8.9 million to $8.8 million in Q2. Fee income also fell by $2.5 million from $11.3 million a year ago.
Despite being a USD lending institution for Bitcoin collateral, Silvergate did not have liquidations during the credit crunch. This started with crypto bank Celsius halting withdrawals. The company received $1.4 billion in leverage, up from $1.1 billion at the end of the first quarter.
Through the bank’s remittance system and the Silvergate Exchange Network, cryptocurrency companies such as Coinbase, Gemini, and Kraken can make transfers to each other. In the second quarter, these companies made $191.3 billion in transfers.
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