SILVERGATE HAS BEEN STRUGGLING

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Silvergate is another crypto company that has been struggling lately and for those that are unfamiliar, Silvergate is a crypto bank in California. It's been facing scrutiny due to connecting to FTX and Alameda. This is a bit of an understanding statement given that the bank unknowingly transferred FTX users' funds to Alameda. Funny enough, illegal trouble seems to be the least of Silvergate worries. The bank confirms experiencing over 8 billion dollars of customer withdrawal following the collapse of FTX. Silvergate had to liquidate assets to honor all of the withdrawals, wiping all of the bank profit since 2013.

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Silvergate reportedly cut 40% of its workforce, the collective news caused Silvergate stock to collapse by 40%. This prompted Art to invest and dumped almost its stake in the bank. This said a lot given Caffey Wood has been buying the dip on almost everything else. Moody's which rate the debt quality of companies, upgraded Silvergate debt to junk meaning that it is risky to hold. This does not necessarily mean all that more, Moody's rating of other crypto companies and pro-crypto countries have all been negative. This might have something to do with Moody's allegiance to Black Rock's investment ideology.

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You might be wondering why this is so important, consider that Silvergate provided banking services to multiple crypto companies including Coinbase, Circle, Kraken, and Paxus. Silvergate even provided loans to MicroStrategy, and Marathon Digital yet another catalyst for the hash rate collapse. The good news is, Silvergate should be found. The bad news is, the banks reportedly receiving pressure from investors to drop its crypto focus. US regulators also issued a warning about the bank crypto-related risk a few days ago. Let's hope is just a warning not a prelude to a crackdown.

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