Citadel Securities takes 5.5% stake in crypto-friendly bank Silvergate Capital; shares rise
Quick Take
- Citadel Securities has taken a stake in beleaguered bank Silvergate Capital.
- The market maker owns 1.7 million shares in the La Jolla-based bank, worth over $25 million.
Shares in Silvergate Capital jumped after market maker Citadel Securities reported a 5.5% stake in the crypto-friendly bank.
Ken Griffin's firm now owns over 1.7 million shares in the La Jolla-based bank, worth over $25 million based on the price at close on Monday. Shares in the bank soared 7% at the open, trading above $15, according to TradingView data.
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The bank has faced increasing scrutiny over the past few months since the collapse of FTX. Silvergate reported a more than $1 billion net loss for the fourth quarter as the sector suffered a "crisis of confidence."
Fears over increased regulatory oversight in the U.S. on banks that interact with cryptocurrency have also weighed heavily on the stock. SI was the most shorted stock on Wall Street as of Jan. 31, according to a recent report from MarketWatch.
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