Silvergate, a California-based crypto bank whose shares are listed on the New York Stock Exchange, is suspending dividend payout to remain highly liquid as the digital currency market tries to pull itself out of the liquidity crisis of 2022. In a press release on January 27, Silvergate, a state-chartered bank that went public in 2019, said it would suspend dividend payout on its “5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A” to preserve capital. Focus On Liquidity The crypto bank said its primary focus is maintaining a highly liquid balance sheet with a strong capital position. This will give it an advantage as it navigates the high volatility in crypto. The move means the crypto bank will have more capital than customers’ digital assets. The bank’s board of directors will re-evaluate the payments of quarterly dividends depending on market conditions evolve. There was no official comment from any of Silvergate’s executives. Related Reading: NYDIG Analyzed The FTX Collapse And Its Implications. What Did We Learn? The high volatility in crypto saw prices peak at around $70,000 in November 2021 ..
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