- The current crypto bear market also had a negative impact on SEN.
- Silvergate Exchange Network (SEN) volumes were lower than the industry average.
The stock price of Silvergate Capital Corp (NYSE: SI) has dropped 19.5% over the last five days after the cryptocurrency-focused bank announced a dismal third quarter. Silvergate stock has recovered 3.5% during Thursday’s early trade, to a price of $55.3 per share, according to Nasdaq.
The current crypto bear market also had a negative impact on SEN (Silvergate Exchange Network), the company’s internal transfer network for crypto customers, during the third quarter.
Third-quarter SEN transaction volume was lower than expected at $112.6 billion, down 41% year-over-year from the previous quarter’s $191.3 billion. In addition, fee income dropped from $8.8 million in the second quarter to $7.9 million this quarter.
Delay of Stablecoin Launch
Although Silvergate Exchange Network (SEN) volumes were lower than the industry average this quarter, CEO Alan Lane remained bullish on the company’s platform and growth prospects in a company blog post.
As of the end of the third quarter of 2022, the company’s average cryptocurrency holdings were $12 billion, down from $13.8 billion in the previous quarter. Silvergate shares lost 3 months’ worth of gains due to a negative week’s performance, which sent the stock back to its July 2022 levels.
Silvergate bought Diem, Meta’s failing cryptocurrency firm, in January 2022 with the intention of constructing a stablecoin on top of its infrastructure.
Silvergate stock has dropped since the stablecoin has not yet been released to the public and because Alan Lane has said that a release this year is not expected. The key reason for the stablecoin launch delay is regulatory obstacles.
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