A La Jolla, California, bank that has established itself as
Under the terms of the transaction, the $12.8 billion-asset Silvergate Capital Corp., parent of Silvergate Bank, is selling 3.3 million shares at $145 per share in a transaction expected to close Thursday. Proceeds of the sale will support Silvergate’s strategic initiatives, such as its Silvergate Exchange Network, which offers around-the-clock cryptocurrency transactions, and the SEN Leverage lending product, which provides loans collateralized by bitcoin.
According to its Dec. 6 prospectus, Silvergate has approved SEN Leverage-related lines of credit totaling $455.5 million as of Nov. 30 — up 41% from the $323 million the bank reported at the end of the third quarter.
More important, perhaps, the Silvergate Exchange Network and the SEN Leverage lending product have been instrumental in attracting deposits from clients active in the digital currency industry. Total deposits hit $15.6 billion on Nov. 30, up from $11.2 billion on Sept. 30 and $2.1 billion in last year’s third quarter.
In recent months, Silvergate has also emerged as a
Silvergate reported a record $23.5 million profit for the three months that ended Sept. 30, boosted by $8.1 million in digital currency transaction revenue.
Silvergate's shares were up 2.6% in late trading Wednesday, to $169.50.
