Silvergate Bank released its first-quarter earnings report 2022 on Tuesday, 19 April 2022. The bank recorded a 40% increase in earnings per share, which means the price increased from $0.55; last year’s first-quarter figure, to $0.79.
Crypto’s high bear market in the first quarter of 2022 affected almost every crypto institution. The worsening situation of the Ukraine-Russia war, following high gas prices and inflation rates, broke records in earnings.
However, some banks soared with double earnings due to the traffic and frequent transfers. Among them was the Silvergate Bank.
Silvergate Bank is a crypto gateway network that enables institutional investors to make transfers through the platform. Silvergate Bank is part of the parent company, Silver Capital Corp. (SI) which also operates Silvergate Exchange, a crypto exchange for digital currency.
The bank is a well-known firm among institutional investors that has lived up to its name with its exceptional services and facilities.
Silvergate Bank Earnings
Silvergate Bank recently released its first quarterly report for 2022 following the closing date on 31st March 2022. The report included many surprising turns of the year for the firm.
According to the report, Silvergate Bank’s net income increased to $24.7 million for common shareholders, which means there was a rise of 94% year-over-year. The firm also recorded a revenue of $52.2 million, 93% year-over-year.
To add more, Silvergate Bank’s per-share earnings increased by 40%, which is a good figure to maintain its status in the market.
Silvergate Exchange Earnings
In terms of cryptocurrency, as Bitcoin and Ethereum dropped by 33% year-over-year in spot trading in the first quarter, Silvergate Exchange Network or SEN also saw a decrease in transfers from last year.
In Q1 of 2021, the exchange recorded $167 billion, compared to that recorded only $142 billion in 2022.
Silvergate Capital Corp
Silvergate Capital Corp. also saw an increase in its earnings. The company recorded a boom of $131.70.
With the popularity of crypto trading and blockchain, the bank also saw an increase in users and digital transactions. According to the quarterly report, the average digital currency customer deposits were around $14.7 billion and fee income was estimated to be $8.9 million.
In a statement, the CEO and president of Silvergate, Alane Lane said, “We started off 2022 on a strong note, driven by the power of our platform and continued progress on our strategic initiatives.”
The firm recently acquired Mark Zukerberg’s stablecoin called Diem for $182 million, after it was defunct for Meta. Silvergate Bank sees this stablecoin as its gateway to dominate the crypto industry and also transform its revenue via digital currency. Currently, Silvergate Bank earns through the traditional interest income.
The bank plans on releasing new viable banking solutions for its users to make transactions and interaction with the platform easier.
Based on the report, SEN increasingly recorded a surge of users. Just last month, the firm saw an addition of 1,100 customers on the platform, a 27% year-over-year increase.
Silvergate bank plans on expanding its reach in the market slowly by introducing new projects and initiatives, as mentioned by the CEO.
Silvergate’s first quarterly report for 2022 shows that the firm has the potential to grow in the market this year. Despite a loss in SEN, the firm believes that as the situation gets better, the exchange will also soar in the market.
Only the future will tell Silvergate Bank’s performance and earnings because right now they made a good start.