Silvergate shoots up 11%, Coinbase dips and MicroStrategy trades flat

Quick Take

  • Silvergate was trading above $15, up 11% by 11:30 a.m. EST. 
  • Jack Dorsey’s Block was higher, while Coinbase dipped and MicroStrategy was flat. 

Silvergate shares soared after the open, and Coinbase traded down as the Nasdaq 100 was higher. 

Shares in the crypto-friendly bank were up 11% to $15.25 by 11:30 a.m. EST, according to Nasdaq data. Silvergate revealed after the close on Friday that the bank's deposit relationship with recently bankrupt crypto lender Genesis was less than $2.5 million. 

Last week, Silvergate shared its fourth-quarter earnings, showing a $1 billion loss. Despite the loss, some analysts remain firm on the stock.

"No other bank could survive a 70% reduction in deposits and still have positive book value, more cash than core customer deposits, and be well-capitalized," KBW analysts wrote in a recent report.

Overall, KBW still maintains Silvergate is stabilizing and has updated its price target to $25 from $38. The investment bank's outlook is based on several assumptions, including a continuation of the "moderate crypto winter."

The downturn in prices should normalize from current levels as the regulatory landscape and the backlash surrounding FTX and other crypto-focused insolvencies continue to unfold, analysts said.

Elsewhere, MicroStrategy was flat, trading around $240. Jack Dorsey's Block was trading above $79, up 3.8%, and shares in Coinbase dipped 1.3%, to trade around $54.40.


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