stock was rising Tuesday after Citadel Securities announced it had taken a stake in the digital currency banking company.
Citadel Securities disclosed in a filing with the Securities and Exchange Commission that it had taken a 5.5% stake in
(ticker: SI), which equals about 1.73 million shares.
Silvergate told Barron’s that it does not comment on specific interactions with current or potential investors. Citadel did not immediately responded to a request for comment.
Shares of Silvergate jumped 4.4% Tuesday to $15.35, while the
was down 0.8%. Investors have been hoping for some good news to move the stock higher. It has fallen 12% this year and 88% in the last 12 months, according to Dow Jones Market Data.
The digital currency bank has had a difficult year so far following the bankruptcy of FTX–one of its customers. In early January, Silvergate stock plummeted after the company announced that deposits dropped by $8.1 billion in the fourth quarter. The company also reduced its staff by about 40% to rein in costs and suspended its dividend.
“I recognize that we’ve made some difficult decisions recently, but we are confident that these changes will enable us to serve our core customers in a responsible and profitable manner,” Chief Executive Alan Lane said on the company’s most recent earnings call.
Citadel isn’t the only firm to buy up Silvergate. Soros Fund Management took up new stakes in the crypto bank, according to a filing on Monday. The fund also bought up shares of digital currency stock
(MARA), and other beaten down stocks such as
Write to Angela Palumbo at [email protected]