Blackrock, an investment management firm, increases its stake in crypto bank Silvergate to 7.2%. Silvergate is a crypto-friendly bank that is in line with Blackrock’s current interest in the industry. They are the largest investment company in the world with over $10 trillion in assets under management, and have already started offering cryptocurrency trading services.
Silvergate Stock Price Jumps!
Being associated with Blackrock has its benefits, and one of them is increased investor confidence. As Blackrock increased its stake in the bank, Silvergate’s share price rose 10.8% to $13.50. It’s still almost 90% below its all-time highs, but that’s another story.
Blackrock currently owns 2.285 million shares of Silvergate bank. There is also a trend that can be seen that the company has been increasing its stakes in the company since 2021 around this time of year. In February 2021, they held 1,144,811 shares which increased to 1,871,537 shares in February 2022, and now they hold 2,285,197 shares.
Silvergate is also being viewed as an investment opportunity by many other venture capital firms. For example, Vanguard groups held positions in the company. We also had Parnassus Fund Investor Shares, the largest shareholder, with a 31.45% stake in Silvergate.
Crypto-friendly banks have plenty of room to grow
Considering how difficult 2022 was for the cryptocurrency industry, it would be a mistake to expect crypto-friendly banks to do well. But as we enter the second month of 2023, things have been going very well for Bitcoin, with the best January in over a decade. Now that the demand for cryptocurrency has skyrocketed, we can expect the industry to thrive and crypto-friendly banks to see an increase in their user base.
A recent survey even showed that 8 out of 10 millionaires ask about cryptocurrencies and their place in their portfolio. This shows that despite the bear market, interest in digital assets has not waned as much as we thought.
Silvergate also had a difficult fourth quarter in 2022, posting a $1 billion loss and suspending dividend payments in January 2023. However, 2023 could well be its year and many other crypto banks.
What are your thoughts as Blackrock increases its stake in crypto-friendly bank Silvergate? And do you think it is a good investment? Let us know in the comments below. Also, if you find our content informative, please like and share it with your friends and family.
Also read: Bitcoin Climbs Above $37k In Nigeria As Government Limits Cash Withdrawals.