Silvergate Capital (SI), stocks surged after Tuesday’s earnings report by the digital asset-focused banking institution.
According to BarronsSilvergate saw its net income rise to $27.4 millions in the first three month of 2022. This is more that twice the earnings from last year and far above the $21.4 million mark in the previous quarters. Many analysts expected that SIlvergate would earn around $16.1 million due to cryptocurrency volatility.
We started 2022 with a strong start, driven by our platform and our continued progress on our strategic projects, Alan Lane, the group CEO.Statement. Particularly pleased with our first quarter results are the fact that this was one the most challenging periods of the entire crypto ecosystem since the start of the pandemic.
Despite the fact the fee income from digital currency customers dropped to $8.9m from $9.3m last quarter, and that the volume was down 35%, the earnings growth is still evident. These hurdles aside, earnings growth shows that digital assets are still being sought after by institutional and retail investors.
Silvergate is the third-largest holding within the United States. VanEck Vectors Digital Transformation ETF – DAPPAt 7.16% Following the earnings announcement, the bank saw a 5% jump. DAPPs also hold Block (SQ), Coinbase (COIN) and other important holdings. Block is expected to report earnings Next month, and Coinbase is coming off of monster 2021 fourth quarter earnings — the company$2.5 billion in revenueThe fourth quarter 2020 revenue was $585.1 million more than it was in the previous quarter.
The biggest challenge in the crypto industry is regulatory issues. However, the existence of institutional capital and the rapidly growing digital infrastructure make DAPP funds attractive. As the companies leading the digital revolution continue to make huge profits, it becomes more likely regulations will be common sense and supportive.
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