Silvergate shares continue to slide after the crisis caused by FTX.
Shares of the crypto bank, which lost more than 50% in value last month, continued its bad course, falling by 3% today.
Silvergate Shares Drop
According to the research report published by Morgan Stanley, the collapse of FTX has paved the way for the emergence of some risks for Silvergate Capital.
The Wall Street bank team, led by analyst Manan Gosalia, kept the price target at $24, although it downgraded the crypto bank’s rating from equal weight to lower weight. The stock has lost more than 50% since the beginning of November. The stock, which fell 3% during the day, fell to $ 25.69.
Analysts noted that the company’s digital deposits fell by 60% compared to the third quarter, noting that Silvergate faces significant uncertainty regarding deposit flows in the near term. While continuing to attract customers’ deposits, the bank may face pressure on net interest margins and net interest income as these outflows must be funded by securities sales and more costly wholesale borrowing.
The report also emphasized that the collapse experienced by FTX could lead to various risks in the crypto ecosystem.
Morgan Stanley’s estimate of 2023 earnings per share for Silvergate stands at $1.58, compared to the $4.19 forecast.
