Silvergate Capital Corporation (SI) stock experienced a decrease of 9.68% in the premarket following the announcement of fourth-quarter 2021 results. However, the last trading session concluded at $138.15 with an increase of 1.31%.
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Fourth Quarter 2021 Results – What’s up?
SI announced fourth-quarter 2021 results on 18th January 2022. The company reported a net income of $21.4 million. Not only this but the Silvergate Exchange Network processed $219.2 billion in US dollar transactions, 35% more than $162.0 billion in the third quarter and 270% from $59.2 billion in the fourth quarter of 2020. Furthermore, SEN Leverage obligations totaled $570.5 million, $322.5 million more at the end of September 2021, and $82.5 million at the end of December 2020.
Customers who used digital currencies climbed to 1,381 at the end of December 2021, 1,305 more than that in September 2021, and 969 in December 2020. In addition, average digital currency user deposits grew to $13.3 billion in the fourth quarter of 2021, $11.2 billion more than the previous quarter. Lastly, the $552.0 million equity offering resulted in the issuance of 3,806,895 shares of Class A common stock.
How was the quarter?
SI had another year of exceptional growth and momentum in 2021, fueled by high demand for SEN-powered digital currency solutions. Total deposits increased to $14.3 billion by the end of 2021, and full-year net income more than quadrupled compared to the previous year, owing to increases in both fee and net interest revenue.
Moreover, the company boosted average deposits from digital currency clients to a record $13.3 billion in the fourth quarter, increasing SEN usage and transaction income, considerably increasing SEN Leverage lines of credit, and notably increasing SEN Leverage lines of credit.
SI also announced the formation of the EJF Silvergate Venture Fund, an investment vehicle to encourage entrepreneurs that will help define the future of the digital currency ecosystem, as well as continue to enhance the stable coin infrastructure capabilities. As the company looks ahead to 2022 and beyond, they are optimistic about the potential and areas for development that the digital currency sector will provide as it continues to develop.
