{"id":74114,"date":"2023-02-15T10:30:59","date_gmt":"2023-02-15T08:30:59","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74114"},"modified":"2025-09-09T18:14:31","modified_gmt":"2025-09-09T15:14:31","slug":"citadel-securities-and-susquehanna-acquire-stakes-in-silvergate-bank","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/citadel-securities-and-susquehanna-acquire-stakes-in-silvergate-bank\/","title":{"rendered":"Citadel Securities and Susquehanna Acquire Stakes in Silvergate Bank"},"content":{"rendered":"

The investment firms Citadel Securities and Susquehanna Advisors Group disclosed in filings with the SEC<\/span> that they held 7.5% and 5.5% stakes in the equity of the crypto-friendly Silvergate Bank. This was reported by Barron\u2019s<\/a>.<\/p>\n

A Citadel Securities-linked source told the publication that the position in Silvergate was not a direct investment and was prompted by activity in the options market.<\/p>\n

The company’s shares closed on February 14 up 18%. Over the past year, Silvergate’s market capitalization has fallen by 85%.<\/p>\n

\n
\"image-111\"
Daily chart of Silvergate Capital shares. Data: Finviz<\/a>.<\/figcaption><\/figure>\n<\/div>\n

According to MarketWatch, the bank\u2019s shares entered<\/a> the shorts\u2019 top priorities. Short interest in the freely traded shares reached 73%<\/a>.<\/p>\n

For the fourth quarter, Silvergate amounted to $1.05 billion<\/a> in losses. The company attributed the negative result to a ‘transformation shift’ in the industry linked to several major bankruptcies. The organization reduced its workforce by 40%<\/a> and suspended dividend payments.<\/p>\n

FTX collapse<\/a> triggered investor concerns about the bank\u2019s resilience and increased regulatory pressure on it.<\/p>\n

In November 2022, Silvergate said that on the bankrupt bitcoin exchange less than 10% of its deposits<\/a> were held. The bank is listed in the list of creditors<\/a> of FTX.<\/p>\n

Senators Elizabeth Warren, John Kennedy and Roger Marshall urged Silvergate CEO Alan Lane to provide detailed information about the bank\u2019s ties to the trading platform<\/a>.<\/p>\n

At the end of 2022, the company faced a class-action lawsuit<\/a> over the alleged role in transferring user deposits from FTX to Alameda Research accounts.<\/p>\n

Earlier, Bloomberg reported an investigation<\/a> by the U.S. Department of Justice\u2019s fraud division into the bank\u2019s dealings with Sam Bankman-Fried\u2019s firms.<\/p>\n

In November, Block.one, the company behind the EOS<\/a> network, and its co-founder Brendan Blumer acquired<\/a> respectively 9.3% and 7.5% of Silvergate Capital\u2019s shares.<\/p>\n","protected":false},"excerpt":{"rendered":"

Citadel Securities and Susquehanna Advisors Group disclosed in filings with the U.S. Securities and Exchange Commission that they held 7.5% and 5.5% stakes in the crypto-friendly Silvergate Bank. Barron\u2019s reports.<\/p>\n","protected":false},"author":1,"featured_media":74115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1229,1683],"class_list":["post-74114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-banks-and-fintech","tag-silvergate-bank"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74114"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74114\/revisions"}],"predecessor-version":[{"id":74116,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74114\/revisions\/74116"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74115"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}