As it seeks capital preservation, crypto-focused bank Silvergate Capital has suspended dividend payments on preferred stock.
The suspension will affect Series A’s 5.375% Fixed-Rate Non-Cumulative Perpetual Stock, Series A. Silvergate stated Friday. It responded by naming its preferred stock (SI.PRA). Daytime drop of more than 26% At $8.43 Common shares of the La Jolla bank, California-based, are available at $8.43 Down around 6% At $13.26
According to the bank, the decision was made in response to its “focus on maintaining high liquid balance sheets with strong capital positions as it navigates recent volatility within the digital asset sector.”
Silvergate reported a poor set of results earlier in the month. It revealed that it had suffered a loss $1 billion in its fourth-quarter and a loss totaling $949 million for the full year.
Silverbank lost approximately 90% of its value in 2022 due to contagion following the collapse of several crypto companies last year. The shares fell another 18% in January, as this trend continued into the first part of 2023.
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UPDATE (January 27, 2015, 15:33 UTC). Updated share price for preferred and common stocks.