Silvergate Bank Becomes Most Shorted Stock in US, but Sees Boost With Citadel Securities Stake
Recent data shows that Silvergate Bank, a crypto-friendly financial institution, has become the most shorted stock in the United States, according to the Financial Industry Regulatory Authority. On Tuesday, Silvergate’s stock saw a rise after it was discovered that Citadel Securities holds a 5.5% stake in the bank, according to a Schedule 13G filing with the Securities and Exchange Commission (SEC). As Silvergate Shares Are the Most Shorted Stock on Wall Street, Citadel Securities Claims 5.5% Stake in the Crypto-Friendly Bank
According to current market data, shares of the crypto bank Silvergate have fallen 85.62% over the past six months. Additionally, as of Feb. 9, 2023, the Financial Industry Regulatory Authority reports that Silvergate Capital’s shares are the most shorted stock in the country.
However, over the last month, Silvergate’s stock has risen 14.48% against the U.S. dollar, and there has been some improvement in price growth in 2023 compared to 2022.
The Short Interest Reporting also indicated that as of Jan. 31, 2023, 72% of Silvergate’s shares were being used for shorting. In recent months, Silvergate has been dealing with negative news regarding the bank’s relationship with the now-defunct Alameda Research and FTX.
The company’s Q4 2022 earnings report showed a loss of $1 billion. However, the recent rebound in the cryptocurrency market in 2023 has helped to some extent, and an SEC filing from Citadel Securities shows an investment in the firm.
A Securities and Exchange Commission (SEC) filing, Schedule 13G, shows that Citadel Securities holds more than 1.7 million shares of Silvergate, which are worth $25.9 million at Tuesday’s exchange rates. It is currently unknown why Citadel Securities has a 5.5% stake in the La Jolla-based bank. It was revealed in Sept. 2022 that Citadel Securities is working with Fidelity Digital Assets and Charles Schwab Corp. on a cryptocurrency exchange called EDX Markets.
Since the news about Citadel Securities, Silvergate’s shares have risen 4.66% against the dollar, remaining above the $15 per share range. Data further shows that Susquehanna Advisors Group owns 7.5% of Silvergate’s shares, or 2.36 million shares. Tags in this story Alameda Research, Charles Schwab Corp, citadel securities, crypto exchange, Cryptocurrency, Dollar, Earnings Report, EDX Markets, Exchange rates, Fidelity Digital Assets, Financial Industry Regulatory Authority, financial institution, ftx, future, investment, La Jolla-based bank, loss, Market Data, negative news, Position, Q4 2022, rebound, Schedule 13G, SEC, SEC filing, shares, shorted stock, Silvergate Bank, silvergate capital, Silvergate"s stock, stock rise, United States, unknown, Worth
What do you think about Citadel Securities claiming a 5.5% stake in Silvergate Bank? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. SEC and CFTC Lawsuits Against Former FTX CEO Paused Until Criminal Proceedings Conclude NEWS | 8 hours ago UAE Launches "Financial Infrastructure Transformation" Program; CBDC Among 9 Key Objectives NEWS | 16 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCzhang Lin Explains the Investment Strategy of LBank Labs in Web3 Next articleNFT Marketplace Blur Launches Native Token, BLUR Price Drops 85% in a Matter of Hours Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms