(Bloomberg) — Silvergate Capital Corp. said deposits from digital-currency customers held steady in the second quarter, a sign that the bank and its clients are weathering the cryptocurrency rout. Shares of the company soared.
Total deposits from those customers totaled $13.3 billion at the end of the second quarter, up from the $13.2 billion three months earlier. Diluted earnings per common share rose to $1.13, surpassing analysts’ average estimate of 84 cents.
Deposit resilience could help undo some of the damage suffered by some of the best-known crypto bank stocks in the first half of this year, when shares tumbled as interest-rate hikes and the collapse of high-profile crypto projects sent investors scurrying. Silvergate was among the hardest hit, dropping 64% through June.
The bank expects to keep adding clients to its platform, just as it did during the last downturn in crypto, Chief Executive Officer Alan Lane said in an interview.
“Despite this volatility, we reported that our pipeline is as strong as ever,” Lane said. “The general growth should be up and to the right because we’ll be adding customers along the way.”
Silvergate, which has slumped 48% this year, jumped 19% to $77.72 at 12:18 p.m. in New York.
(Adds shares in first and last paragraphs.)
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