Silvergate Bank – a bank dedicated to serving crypto industry institutions – saw its first quarter earnings nearly double compared to last year’s figures. However, it also reports a drop in BTC and ETH spot trading volumes from the previous quarter.
- According to the bank’s first-quarter earnings report unveiled on Tuesday, common shareholders’ income grew 34% from the previous quarter and 94% over the previous year.
- Meanwhile, revenue grew 22% and 93% from last quarter and last year, respectively. The company’s assets – $15.8 billion – have more than doubled since 2021.
- However, Silvergate only facilitated $142 billion in SEN transfers between crypto exchanges and financial institutions this quarter. This is $219 billion at the end of 2021 and $167 billion less than last year.
- This coupled with the widespread lack of trading interest in the crypto market in recent months. According to data from Coinmetrics, BTC and ETH barely topped $1 trillion in trading volume this quarter – down 33% from the previous.
- Still, it hasn’t impacted the company’s transaction revenue, which has remained relatively flat over the past three quarters. This has allowed for an increase in total revenue, most of which comes from interest income.
- One of the companies paying the said interest is Microstrategy, which recently took a $205 million bitcoin collateral loan with Silvergate to buy more bitcoin.
- Silvergate’s digital currency deposits have also continued to grow, averaging $14.7 billion from exchanges and institutional investors. So too are the company’s digital currency customers, which now number over 1500.
- The bank was recently responsible for buying Facebook’s recently abandoned stablecoin project Diem for $182 million. It is looking to expand its stablecoin infrastructure to accelerate its growth.
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