Silvergate Declines In The Pre-market After Suspending The Preferred Dividend
Key Points:
- Before the market opened, Silvergate lost more than 6% of its value after reporting that it has stopped paying dividends on its Series A 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock.
- The demise of 3AC and FTX has had an impact on the entire business.
Silvergate lost more than 6% of its value after reporting that it has stopped paying dividends on its Series A 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock.
In order to maintain “a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset business,” the company stated it is working to preserve money.
Following the company’s announcement of a $1 billion fourth-quarter loss and a 20% employee reduction, Silvergate’s price has been erratic this month. Although they have recently increased, cryptocurrency values are still far below their 2021 highs. The demise of 3AC and FTX has had an impact on the entire business.
“We were surprised by the announcement, to be frank, as SI hadn’t previously indicated it was contemplating pausing the dividend payment in recent public commentary,” KBW analysts led by Michael Perito wrote in a note. “The bank indicated it still has more cash than deposits as of the date of the announcement (1/27), and we continue to have no liquidity concerns.”
The company said it “continues to maintain a cash position in excess of its digital asset customer related deposits,” and the board will re-evaluate the payment of quarterly dividends as market conditions evolve.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
News
Silvergate Declines In The Pre-market After Suspending The Preferred Dividend
Key Points:
- Before the market opened, Silvergate lost more than 6% of its value after reporting that it has stopped paying dividends on its Series A 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock.
- The demise of 3AC and FTX has had an impact on the entire business.
Silvergate lost more than 6% of its value after reporting that it has stopped paying dividends on its Series A 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock.
In order to maintain “a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset business,” the company stated it is working to preserve money.
Following the company’s announcement of a $1 billion fourth-quarter loss and a 20% employee reduction, Silvergate’s price has been erratic this month. Although they have recently increased, cryptocurrency values are still far below their 2021 highs. The demise of 3AC and FTX has had an impact on the entire business.
“We were surprised by the announcement, to be frank, as SI hadn’t previously indicated it was contemplating pausing the dividend payment in recent public commentary,” KBW analysts led by Michael Perito wrote in a note. “The bank indicated it still has more cash than deposits as of the date of the announcement (1/27), and we continue to have no liquidity concerns.”
The company said it “continues to maintain a cash position in excess of its digital asset customer related deposits,” and the board will re-evaluate the payment of quarterly dividends as market conditions evolve.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Other Posts
Related Posts
