The bank sold its assets at a loss to save itself from collapse but remain loyal to cryptocurrency.
Silvergate Capital is a bank holding company focused on cryptocurrency and digital assets. Following the FTX crash Silvergate witnessed $8.1 billion in withdrawals from its crypto deposits. The sudden loss of assets has pushed the company into survival mode.
To maintain liquidity, the company sold assets worth $5.2 billion at a loss of $718 million. It went ahead and announced 40% layoffs cutting roughly 200 employees to survive the crypto winter.
The total deposits after withdrawals stand at $3.8 billion compared to $11.9 billion before FTX filed for bankruptcy.
The crypto industry has crashed from reaching an all-time high of $3 trillion to $860 billion in 2022. The sentiments are not in favour of the industry and with possible news of Genesis filing for bankruptcy in 2023, the crypto marketcap will further deteriorate.
Bitcoin (BTC) and Ethereum (ETH) are already down by 70% and trading at an all-time low compared to the last six months. Solana (SOL) is badly affected by the FTX collapse, its price nosedived to below $10 panicking the investors.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.