JPMorgan Downgrades Silvergate Capital From Overweight to Neutral
According to the latest reports from JPMorgan that went live on Friday, Silvergate Capital has been downgraded from “overweight” to “neutral.” JPMorgan stated in the report that Silvergate Capital experienced more than expected deposit outflows in Q4, which will have financial implications on its long-term profitability. The price target was also cut to $14 from $30. “While the challenging backdrop for the crypto settlement business was a factor in the worse-than-expected results being released, we also believe that concerns voiced by short-sellers (on Twitter) likely also contributed to Silvergate’s customers withdrawing deposits from the platform at a greater than anticipated level,” analysts led by Steven Alexopoulos said. Source: CNBC Silvergate shares plunge hard According to recent reports, Silvergate Capital has laid off 40% of its workforce, which accounts for 200 employees. It has also come to light that the crypto currency bank witness...