Block.one and its CEO acquired 16.8% of Silvergate Capital’s shares.

Block.one, the company that launched the EOS network, and its co-founder Brendan Blumer acquired respectively 9.3% and 7.5% of the crypto-friendly bank Silvergate Capital shares.

Financial terms were not disclosed.

As a result of the deals, Blumer became the largest shareholder of Silvergate Capital, according to CoinDesk.

“Current share prices for Silvergate do not fully reflect their strong balance sheet, strategic positioning or growth trajectory, and therefore offer a unique investment opportunity,” the press release said in press release.

Silvergate shares rose 11.49% in trading on November 23, to $28.15. Since the start of the year, the securities have fallen 81%, and over the last month — 53.6%.

The sharp decline in market capitalization raised concerns about risks related to the FTX collapse for the company.

Earlier, the bank said the troubled exchange held $1 billion in deposits, representing less than 10% of the bank’s total assets. Silvergate did not have any outstanding loans or investments in FTX, and the platform did not use the Silvergate Exchange Network.

Prime broker FalconX temporarily paused its participation in the bank’s payment network amid the uncertainty.

As of the second quarter of 2022, the value of the outstanding loans issued under the SEN Leverage program stood at $1.4 billion. The average client deposits for the quarter declined from $14.7 billion to $13.8 billion.

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