The ARK Fintech Innovation ETF Has Officially Sold Off 99% Of Silvergate Shares
Key Points:
- On Thursday, January 6, Cathie Wood’s ARK Fintech Innovation exchange-traded fund sold around 404,000 shares of Silvergate, reducing the ETF’s holdings by more than 99%.
- Its stock price fell below the issue price of US$12 yesterday, a drop of more than 45%.
ARK Fintech has liquidated nearly all of their shares in Silvergate Capital Corp. after the cryptocurrency-focused bank reported that it was obliged to sell assets at a severe loss due to customers withdrawing the majority of their deposits during the fourth quarter.
Cathie Wood’s ARK Fintech Innovation exchange-traded fund sold around 404,000 shares of Silvergate on Thursday, January 6, lowering the ETF’s holdings by more than 99%. The fund’s remaining holdings amount fewer than 4,000 shares worth around $43,000, or less than 0.01% of the fund’s total portfolio.
Silvergate’s preliminary fourth-quarter statistics revealed yesterday that the company’s total customer deposits decreased from $11.9 billion to $3.8 billion, forcing it to sell a quarter of its assets at a substantial loss. And cut 40% of the workforce (about 200 employees). Yesterday, its stock price fell below the issue price of $12, a decline of more than 45%.
Silvergate shares fell by a record 43% on Thursday, and they fell by as much as 6.9% further on Friday. The price has been falling for more than a year as the crypto business continues to tank. Since its all-time high of $222.13 in November 2021, the stock has dropped more than 94%, wiping off about $5.5 billion in market value.
Wood’s decision to nearly totally dump her holding is a sharp reversal from only two months ago, when her ARK Fintech Innovation fund purchased more than 200,000 shares of the bank in a week as the collapse of Sam Bankman-FTX Fried’s exchange heightened fears about crypto businesses’ solvency. She earlier sold over 190,000 shares of Silvergate in mid-December, when the stock was selling at nearly $19 per share, roughly 50% more than Thursday’s closing price.
“The conditions surrounding Silvergate are exceedingly complex, and the near-term outlook is difficult to anticipate,” Sutton said in a client note. “It must struggle with the continuation of crypto winter, regulatory inquiries, and possibly legislative action, all of which materially undermine the future growth profile.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
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The ARK Fintech Innovation ETF Has Officially Sold Off 99% Of Silvergate Shares
Key Points:
- On Thursday, January 6, Cathie Wood’s ARK Fintech Innovation exchange-traded fund sold around 404,000 shares of Silvergate, reducing the ETF’s holdings by more than 99%.
- Its stock price fell below the issue price of US$12 yesterday, a drop of more than 45%.
ARK Fintech has liquidated nearly all of their shares in Silvergate Capital Corp. after the cryptocurrency-focused bank reported that it was obliged to sell assets at a severe loss due to customers withdrawing the majority of their deposits during the fourth quarter.
Cathie Wood’s ARK Fintech Innovation exchange-traded fund sold around 404,000 shares of Silvergate on Thursday, January 6, lowering the ETF’s holdings by more than 99%. The fund’s remaining holdings amount fewer than 4,000 shares worth around $43,000, or less than 0.01% of the fund’s total portfolio.
Silvergate’s preliminary fourth-quarter statistics revealed yesterday that the company’s total customer deposits decreased from $11.9 billion to $3.8 billion, forcing it to sell a quarter of its assets at a substantial loss. And cut 40% of the workforce (about 200 employees). Yesterday, its stock price fell below the issue price of $12, a decline of more than 45%.
Silvergate shares fell by a record 43% on Thursday, and they fell by as much as 6.9% further on Friday. The price has been falling for more than a year as the crypto business continues to tank. Since its all-time high of $222.13 in November 2021, the stock has dropped more than 94%, wiping off about $5.5 billion in market value.
Wood’s decision to nearly totally dump her holding is a sharp reversal from only two months ago, when her ARK Fintech Innovation fund purchased more than 200,000 shares of the bank in a week as the collapse of Sam Bankman-FTX Fried’s exchange heightened fears about crypto businesses’ solvency. She earlier sold over 190,000 shares of Silvergate in mid-December, when the stock was selling at nearly $19 per share, roughly 50% more than Thursday’s closing price.
“The conditions surrounding Silvergate are exceedingly complex, and the near-term outlook is difficult to anticipate,” Sutton said in a client note. “It must struggle with the continuation of crypto winter, regulatory inquiries, and possibly legislative action, all of which materially undermine the future growth profile.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
Coincu News
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