Silvergate suspends dividends to preserve ‘highly liquid balance sheet’
January has been a rough month for Silvergate, with the dividend halts coming just a few weeks after it announced a Q4 2022 loss of $1 billion and laid off 200 employees.
In a Jan. 27 announcement, the firm stated that it is halting “the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital.” [...] but stressed that it still maintains a “cash position in excess of its digital asset customer-related deposits.”
Compare that to this:
Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport
So, who are these "institutions"?
Obviously not banks, as many regulators are demanding that established banks stay clear of crypto - and that any attempt to hold cryptos shall be seen as going against their requirement of prudent finances!
That's the real problem for crypto-banks such as Silvergate - they didn't calculate the crypto-quarantine rules.
A highly liquid sieve.