Silvergate Capital Corp. (SI) is a key financial infrastructure solution provider for the online currency business. The company’s exchange network makes funding and lending solutions much easier for its customers. The company also offers cash management and loan services to its customers.
The price of SI stock during the regular trading on January 31, 2022, was $107.7 with a phenomenal gain of 12.11%. At last check in aftermarket, the stock further shined by 11.27%.
SI: Events and Happenings
On January 31, 2022, SI reported about the acquisition of Diem Group’s technological and intellectual assets driving its blockchain-based payment network. The company enhanced its stablecoin infrastructure through this collaboration. The company purchased deployment and operations setup and infrastructure for the facilitation of cross-border remittances. Also included in the agreement are exclusive software tools to drive a regulatory-compliant stablecoin platform.
SI: CEO Comments
Speaking at the occasion, SI CEO Alan Lane said that the company identified a prerequisite for a stablecoin that is highly scalable to enhance money movement without blockades. He further added that the company is dedicated to the continued nurturing of its customer’s community needs.
SI: Key Financials
On January 18, 2022, SI reported its financial results for the three months ended December 31, 2021. Some of the main updates from the fourth quarter are as follows.
Net Earnings
Net earnings for Q4 2021 were $21.4 million against $9.1 million for the same quarter of 2020.
Net Income per Share
Diluted net income per share attributed to the company’s common shareholders for Q4 2021 was $18.4 million, or $0.66 compared to $9.1 million or $0.47 for the same period of 2020.
SI and EJF Capital LLC co-announced about unveiling the EJF Silvergate Ventures Fund on December 16, 2021. It is a collaborative investment fund engaged in the development of digital currencies payment methodologies and specialty finance technology.
SI announced the closure of its public offering of 3,806,895 shares at a public price of $145.00 per share on December 9, 2021. The net proceeds gained from the offering were up to $552.0 million. The company reported on November 9, 2021, that the Executives presented at Oppenheimer’s 4th Blockchain & Digital Assets Summit: The Evolution of Digital Assets held on November 18, 2021.
Conclusion
SI stock price outperformed by 5% from the past few months as it is in a good position to attract the potential investment. The financial experts are of the view that the recent boom in aftermarket stock price is the result of its acquisition of blockchain payment network assets from Diem. The experts are attributing this radical step to the sound policies of the company.
