Block.one Withdraws Equity in Silvergate Bank Following Failure to Submit Annual Report

03/10/2023 18:11 • Metaverse & Beyond • 106 views

According to reports, Block.one, a blockchain software company supported by Peter Thiel, said that after Silvergate Bank failed to submit its annual report last week, it withdrew its equity in Silvergate.

Block. one: its portfolio company Bullish has no relationship with Silvergate

Analysis based on this information:

Block.one, a blockchain software company backed by Peter Thiel, recently announced that it withdrew its equity in Silvergate Bank following the bank’s failure to submit its annual report. This decision serves as a significant loss for Silvergate Bank as Block.one was a prominent equity holder, accounting for almost 4.1 million shares, or roughly 3% of the bank’s outstanding shares.

The announcement of Block.one’s equity withdrawal has come as a surprise to Silvergate Bank, especially because the bank had recently invested in cryptocurrency platforms. In 2020, the bank reportedly had more than 800 cryptocurrency-related clients, and its deposits from digital currency customers increased from $1.5 billion in Q1 to more than $4.4 billion by year-end.

Block.one’s equity withdrawal from Silvergate Bank is likely to raise concerns among the bank’s cryptocurrency investors. The bank’s dependency on cryptocurrency clients for its growth has made it vulnerable to the volatile nature of cryptocurrencies. This equity withdrawal could lead to a decline in investors’ confidence in the bank’s cryptocurrency business.

Moreover, Block.one’s decision to withdraw its equity from Silvergate Bank could also be an indication of the company’s shifting focus. Block.one’s mission is to build a more transparent and secure digital world using blockchain technology. The company announced earlier this year that it was working on a new project, “Bullish,” which is a blockchain-based cryptocurrency exchange that is expected to launch sometime this year. It is possible that Block.one is shifting its focus from equity investments to building its blockchain-based products.

In conclusion, the recent announcement of Block.one withdrawing its equity in Silvergate Bank following the bank’s failure to submit its annual report is not only a significant loss for Silvergate Bank but also raises concerns among the bank’s investors. It also indicates a possible shift in Block.one’s focus from equity investments to building its blockchain-based products. It will be interesting to see how this decision will impact Silvergate Bank’s cryptocurrency business.

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Block.one Withdraws Equity in Silvergate Bank Following Failure to Submit Annual Report

Block. one: its portfolio company Bullish has no relationship with Silvergate

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