Kategorie: Crypto Markets

• Silvergate Capital Corp suspends dividend on its preferred stock.
• Wedbush Securities analyst reiterates his neutral rating on “SI”.
• Silvergate stock is currently down over 85% since mid-August.

Silvergate Capital Corp ended 5.0% down on Friday after the crypto bank suspended dividend on its preferred stock.

Silvergate is trying to preserve capital

The embattled digital currency services company is cutting back on the payout to preserve capital. Its press release reads:

This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital position. Company continues to maintain a cash position in excess of its digital asset customer related deposits.

The California-based company also confirmed that its Board will re-evaluate the quarterly payment once market conditions improve.

Silvergate stock has lost over 85% since mid-August, related partially to the FTX collapse. Consequently, billionaire investor Cathie Wood almost entirely pulled out of it at the start of the new year.

Is Silvergate stock a buy?

According to a Wedbush Securities analyst, suspending Series A preferred stock dividend will make things more difficult for this financial infrastructure solutions firm in the long run.

Reiterating his “neutral” rating on the Silvergate stock on Friday, David Chiaverini said:

We believe this move could raise Silvergate’s cost of capital down the road when Silvergate attempts to tap the capital markets for a future capital raise. Any new fixed income or preferred issuance will require a higher coupon.

His $13 price objective on the stock suggests it lacks any upside whatsoever. Earlier in January, Silvergate Capital Corp said average deposits from digital asset customers tanked 39% to $7.3 billion in its fourth quarter as Coin Journal reported here.

The post Is Silvergate stock a ‘buy’ after it suspended preferred stock dividend? appeared first on CoinJournal.

• Crypto-friendly bank Silvergate announced its suspended payment of dividends on its series A preferred stock.
• The company’s shares fell more than 11% pre-market after the announcement.
• Silvergate reported a $1 billion loss in the fourth quarter and also cut its staff by 20% amid the crypto bear market and impact of FTX collapse.

Silvergate, a crypto-friendly bank that’s lately hit a rough stretch following the collapse of crypto exchange FTX, has suspended dividend payment on its preferred stock.

Specifially, the crypto bank says it is suspending payment of dividends on the its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The US-based company is taking the move to help preserve capital following the effects of recent turbulence across the crypto ecosystem.

“This decision reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry,” the firm said in a press release.

According to the news release, the Board of Directors will re-examine the company’s payment of quarterly dividends at a later date, with this dependent on how “market conditions evolve.”

Silvergate shares fall sharply

Following Friday’s news, shares of parent company Silvergate Capital (NYSE:SI) fell more than 11% in early morning trading, hitting lows of $12.55.

Despite a decent run for crypto in the last few weeks, where Bitcoin broke above $23k, Silvergate’s shares have struggled amid negative sentiment.

At the time of writing, the shares were trading at around $12.93, still more than 8% down on the day. The company’s stock is down nearly 27% year-to-date, with the losses coming on the back of a brutal bear market for the broader cryptocurrency industry.

As previously highlighted, Silvergate reported a $1 billion loss during the fourth quarter and moved to slash its workforce by 20% as the negative impact of FTX’s implosion hit the company. 

The crypto bank also reported that customer digital assets deposits had fallen significantly as uncertainty swept through the crypto market.

The post Crypto bank Silvergate suspends preferred stock dividend appeared first on CoinJournal.

• Yield App is a digital wealth platform that offers safe custody of digital assets.
• The platform allows customers to exchange and earn on their assets at market-leading rates.
• The acquisition adds structured products to the Yield Apps product suite.

Digital wealth management platform Yield App yesterday announced it has acquired Trofi Group, a platform that offers structured solutions for cryptocurrencies. The acquisition brings four new structured products to the Yiled App product suite.

Besides providing customers with additional products, the move also makes Yield App one of the leading digital wealth platforms.

What specifically does Trofi Group bring on board?

The team at Trofi Group boasts of 30 years experience in derivatives desks at JP Morgan and HSBC. Now that they will join hands with Yield App in building best-in-class crypto-structured products means Yield App will provide a superior suite of products.

Commenting on the acquisition, the CEO of Yield App, Tim Frost, said:

“The acquisition of Trofi Group establishes Yield App as a pioneer within the crypto-structured products arena, making us one of only a few platforms to bridge the gap between traditional finance and crypto. We are grateful to the team at Trofi for trusting us to continue their excellent work in bringing enhanced yield structured products to crypto. We look forward to leveraging the team’s vast experience to expand Yield App’s suite of digital wealth management solutions.”

Following the acquisition, Yield App will be launching a beta version of a dedicated investment app duped “Trofi, powered by Yield App.” The app will allow customers to access Yield App’s first crypto-structured products through four different strategies and other products including the dual currency, the range, Sharkfin, and the Target.

Dual currency allows investors to acquire cryptocurrencies at a lower price at a predetermined point in the future, while also earning yield. The Range is a structured product that allows investors to generate yield assuming the markets will remain within a specified price range. Sharkfin allows investors with a moderately bullish view of future prices to earn a guaranteed minimum coupon with the potential to generate a high yield at maturity. The Target product allows investors with a bullish view of the future price of a cryptocurrency to earn a high yield.

The post Leading digital wealth platform Yield App acquires Trofi Group appeared first on CoinJournal.

• At press time, Polygon (MATIC) was trading at $1.09, up 8.93% in 24 hours.
• Gains Network DEX was initially released on Polygon before being deployed on Arbitrum.
• The Gains Network DEX has greatly contributed to the recent rising transactional activity on Polygon.

The price of Polygon (MATIC) has been steadily rising in recent weeks and it has regained the $1.0 level as the broader crypto market continues to recover.

In addition to Polygon just following the broader crypto market in the current bullish trend, there is an increased transaction activity on the network mainly because of the Decentralized exchange (DEX) Gains Network which was released on the network. The Gains Network DEX was later deployed on Arbitrum and its daily trading volume on Arbitrum has now crossed $230 million.

The Gains Network decentralized exchange

It is now barely a month since the Gains Network was deployed on the Arbitrum blockchain. The DEX allows crypto traders to trade various financial derivatives of various assets including crypto, US stocks, and indices using smart contracts. It also allows stakers to earn as much as 10% interest on their GNS tokens.

The DEX provides an opportunity for global traders who would otherwise not be able to trade US-listed instruments without relying on banks. The DEX has so far processed over $25 million in trading volume.

Earlier this week, the DEX started a trading contest with rewards totalling $100,000, which is likely the reason for the recent spike in trading volume.

Besides having a direct impact on the Polygon (MATIC) price, the increased activity on the Gains Network has also resulted in the GNS token price rising by more than 40% over the past week.

The post Polygon’s Gains Network DEX volume crosses $1.5B as Polygon price reclaims $1 appeared first on CoinJournal.

• The price of the Fantom token, FTM, has risen by 5.9% today.
• Its price has risen by more than 52% in the last week.
• The Fantom ecosystem is preparing for a number of upgrades in the coming days.

Fantom (FTM) price is leading the current crypto market recovery after registering a 128.8% price surge over the past 30 days. The bullish trend has gained momentum over the past week after Fantom announced the launch of an on-chain funding system Ecosystem Vault.

FTM has surged by more than 52% since the Ecosystem vault was launched and investors are expecting further price movement ahead of a number of upcoming upgrades.

Expected Fantom upgrades

Fantom is designed as a Directed Acyclic Graph (DAG) smart contract blockchain providing decentralized finance (DeFi) services to Decentralized Applications (DApps) developers. The blockchain has seen tremendous growth due to its unique design and capabilities.

Fantom’s Chief Marketing Officer (CMO), Simone Pomposi, recently announced that the Fantom community should be ready for a number of upgrades according to the blockchain’s revised roadmap.

One of the highly anticipated upgrades is the new “Go-Opera’s profiling and bottleneck identification” database dubbed Carmen.

2/n

New Database: Carmen pic.twitter.com/Q41TrQ2Fro

— Simone Pomposi (@theotherpomp) January 26, 2023

Carmen will allow faster cryptographic hashes and customization of Fantom.

Besides the new database, Fantom is also gearing up for a new virtual machine dubbed Toscha, increased mainnet performance so that it can be eight times faster, and reduced storage requirement by 98%.

The post Several upgrades coming to Fantom: FTM price up 52% in 7 days appeared first on CoinJournal.