Mar 03, 2023
MicroStrategy, Tether Deny Silvergate Exposure Amid Bankruptcy Fears
MicroStrategy and Tether have recently announced that they have no meaningful exposure to Silvergate Bank, after the financial institution revealed that it would be postponing the filing of its annual 10-K financial report. This news has caused many to fear that the cryptocurrency bank may be on the brink of a bankruptcy filing.
MicroStrategy, which owns over 130,000 Bitcoin (BTC), confirmed that its BTC collateral is not held with Silvergate and that the loan it has with the bank would not be accelerated in the event of a bankruptcy or insolvency. Tether also denied any exposure to the bank.
Silvergate is a fintech firm that provides financial infrastructure solutions and services to some of the largest cryptocurrency exchanges, institutional investors and mining companies in the world, including its 24/7 payments platform, Silvergate Exchange Network, which has processed over $1 trillion in transactions since 2017. It also provides a stablecoin infrastructure platform, digital asset custody management and collateralized lending services.
The late 10-K filing has had a consequential effect on its partnerships, with Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos all confirming that they will be scaling back their relationships with Silvergate in some capacity. Gemini also announced that it has stopped accepting customer deposits and processing withdrawals through Silvergate ACH and wire transfers.
The news of Silvergate’s potential financial troubles first surfaced in Q4 2022, when it reported a net loss of $1 billion as a result of the collapse of FTX in November. The dealings between Silvergate and FTX are currently being investigated by the United States Department of Justice, although no accusations of wrongdoing have been made.
Since the news of the late 10-K filing on March 1, Silvergate’s stock price has plummeted 58.7% to $5.57, down 97% from its all-time high of $219.7, hit on Nov. 14, 2021.
The news of Silvergate’s potential financial difficulties has caused many to consider alternative solutions for NFT marketing, crypto promotion, and web3 agencies. Twitter NFT marketing, for example, has become an increasingly popular way to promote and sell NFTs. An NFT marketing agency can help to ensure that NFTs reach the right audiences and maximize their potential for success. Web3 agencies can also provide valuable services to those looking to launch and promote their projects in the web3 space.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.