Silvergate Capital Corp (NYSE:SI) shares are up more than 25% Tuesday morning after the company reported fourth-quarter financial results.
What Happened: Silvergate reported adjusted fourth-quarter earnings of 48 cents per share, which missed average analyst estimates of 81 cents per share.
Silvergate said it saw significant outflows of deposits during the quarter and took several actions to maintain cash liquidity.
At the end of last week, Silvergate announced it decided to cut 40% of its workforce. The company also said it would recalibrate its expense base and evaluate its product portfolio and customer relationships.
“While we are taking decisive actions to navigate the current environment, our mission has not changed,” said Alan Lane, CEO of Silvergate.
Silvergate is a provider of financial infrastructure solutions to the digital asset industry. Some of the most popular digital assets include Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). It appears the stock is also catching a boost from a surge in the broader crypto market.
Bitcoin crossed the $21,000 mark for the first time since early November. The crypto market has rallied in recent weeks alongside broader risk assets as investors continue to digest inflation data and assess the Federal Reserve’s next move.
Related Link: Why Bitcoin- And Ethereum-Related Stocks Are Rising
SI Price Action: Silvergate hit new 52-week lows last week before bouncing back.
The stock was up 20.9% at $15.97 at time of publication, according to Benzinga Pro.
Photo: Petre Barlea from Pixabay.