Analysis of Silvergate's Q4'22 Earnings

Amidst the broader market pullback, Silvergate's crypto deposits fell sharply, with an average balance declining to ~$7bn from $12bn QoQ. ~$150mm deposits correlated to customers filing for bankruptcy. In order to maintain liquidity, Silvergate sold debt securities. 

"We saw a modest decline in Silvergate's digital asset customers in the fourth quarter, a trend that we expect to continue in 2023 as the digital asset industry undergoes further transformation. In turn, total deposits from digital asset customers declined to $3.8 billion December 31, 2022, compared to $11.9 billion at September 30, 2018."