Silvergate Suspends Dividend Payments to Preserve Capital Amid Crypto Turbulence

• 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 is taking the move to help preserve capital following the effects of recent turbulence across the crypto ecosystem.

Silvergate, a crypto-friendly bank known for its services to the digital asset industry, recently announced its decision to suspend payment of dividends on its series A preferred stock. The news has had an immediate impact on the market, with the company’s shares falling more than 11% pre-market.

The announcement was made in response to the recent turbulence across the crypto ecosystem, which has had a significant impact on Silvergate’s operations. In the fourth quarter of this year, the bank reported losses in excess of $1 billion and was forced to cut its staff by 20%. As a result, the board of directors has decided to suspend dividend payments in order to preserve capital and ensure the company can weather the storm.

The company stated that it will re-examine the payment of quarterly dividends at a later date, depending on how the market evolves. Silvergate’s leaders are confident that the move will help the company to remain financially stable during these difficult times, while still providing the quality services its customers have come to expect.

Silvergate’s decision to suspend dividend payments is not the only change the bank has made in recent months. It has also implemented a series of cost-saving measures, including the closure of certain branches and the restructuring of its loan portfolios. These changes, combined with the suspension of dividend payments, have allowed Silvergate to remain competitive and continue to provide quality services to its customers.

Overall, while Silvergate’s decision to suspend dividend payments may have had a negative impact on the company’s stock price, it is a necessary move to ensure the bank’s long-term financial stability. By taking these measures, Silvergate is ensuring that it can continue to provide the high-quality services its customers have come to expect, even in the face of an uncertain market.