Crypto bank Silvergate Capital reported earlier this month that it posted a net loss attributable to shareholders of $1 billion in the fourth quarter of 2022.
In the last quarter of 2021, for comparison purposes, the company achieved a net profit of 18 million USD; Already in the third quarter of that year, net income amounted to 40.6 million US dollars.
The result released in January culminated in an annual loss of about $949 million, compared to a net income of $75.5 million in 2021.
The negative results came as the company said it saw an influx of $8.1 billion in rssgates in the last three months of last year, and that it had laid off 40% of its employees.
In connection with the workforce reduction, the crypto bank expects to incur restructuring costs of $8.1 million – most of that amount will be used later in the quarter.
In addition, Silvergate posted a $134.5 million loss on about $1.7 billion in securities it expects to sell this quarter as it tries to stem the massive outflows at the end of last year.
Continue after the announcement
As with every other major cryptocurrency company, Silvergate was hit by a crisis last year, which led to a major downturn in the industry, culminating in November with the collapse of FTX.
Despite this, at the time of writing, Silvergate shares were trading on the NYSE at $13.85, up 4.92%, while Bitcoin (BTC) was up 1.7% to trade at $21,235.