Block.one and CEO Blumer amass 17% stake in Silvergate

Quick Take

  • Block.one CEO Brendan Blumer has acquired a 9.3% stake in Silvergate with the Nov. 16 purchase of 2.9 million shares of the company’s stock.
  • Block.one, the startup behind the EOS blockchain, separately acquired a 7.5% stake in the bank with the purchase of 2.4 million shares.

Block.one CEO Brendan Blumer has acquired a 9.3% stake in Silvergate with the Nov. 16 purchase of 2.9 million shares of the company's stock, according to documents filed with the U.S. Securities and Exchange Commission. 

Block.one, the startup behind the EOS blockchain, separately acquired a 7.5% stake in the bank with the purchase of 2.4 million shares.

CoinDesk, which previously reported the transactions, said the purchase made Blumer the largest shareholder of Silvergate.

Shares of the company were up 8.8% at 2:40 p.m. EST to trade at $27.47, according to data from TradingView. Although losses over the past week have almost been reversed, shares have declined 49% over the past month amid concerns about fallout related to the collapse of the FTX crypto exchange. 

While Silvergate disclosed exposure to FTX in the form of deposits earlier in the month, CEO Alan Lane has said that the company had “no outstanding loans to, nor investments, in FTX, and FTX is not a custodian for Silvergate's bitcoin-collateralized SEN Leverage loans.”

FalconX, the crypto prime broker, resumed use of Silvergate’s payment network after pressing pause on the partnership last week.


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