Silvergate Bank adds 48 crypto clients in Q4 despite 55% decline in net income
In its first earnings release since going public in November, Crypto-friendly bank Silvergate reported a 55% decline in net income, beating street estimates, while adding 48 crypto clients in the quarter. With last quarter’s numbers now in the books, Silvergate brought in $24.8 million in net income in 2019, up 11.2% YoY, and serves 804 crypto clients including Coinbase, Kraken, and Gemini. Silvergate CEO, Alan Lane attributes client growth to its Silvergate Exchange Network (SEN), which allows near-instant 24/7 money transfers between different crypto exchanges. SEN handled 14,400 transactions in the fourth quarter compared to 12,312 in the third quarter of 2019 and 4,977 transactions in the fourth quarter of 2018.
Why it matters:
- While generally flying under the radar, Silvergate is one of the most systemically important companies in the crypto, banking a large portion of the industry.
- Monitoring the health and growth of the bank provides interesting insights into some of the financial plumbing underpinning much of the world’s largest crypto businesses.
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