Silvergate Provides Statement on Minimal Exposure to BlockFi

Rhea-AI Summary

Silvergate Capital Corporation (NYSE: SI) provided a business update regarding its deposit relationship with BlockFi, stating it represents less than $20 million of total digital asset deposits as of November 28, 2022. The company clarified that BlockFi is not a custodian for its bitcoin-collateralized SEN Leverage loans, which have shown zero losses. Silvergate also holds a cash collateral account containing $10 million to support its services to BlockFi. CEO Alan Lane affirmed the company's commitment to managing industry volatility.

Positive

• Zero losses reported on bitcoin-collateralized SEN Leverage loans.
• Maintains $10 million cash collateral account for ACH services.

Negative

• Deposit relationship with BlockFi limited to less than $20 million.

LA JOLLA, Calif.--(BUSINESS WIRE)-- Silvergate Capital Corporation (the "Company" or "Silvergate") (NYSE: SI), the leading provider of innovative financial infrastructure solutions to the digital asset industry, today announced a business update, citing that its deposit relationship with BlockFi Inc. (“BlockFi”) is limited to less than $20 million of its total deposits from all digital asset customers as of November 28, 2022.

BlockFi is not a custodian for Silvergate’s bitcoin-collateralized SEN Leverage loans, which to date have continued to perform as expected with zero losses and no forced liquidations. Silvergate has no investments in BlockFi.

Silvergate maintains a first priority lien and security interest in a cash collateral account, which contains $10 million for the benefit of Silvergate to support ACH services provided to BlockFi.

“As the digital asset industry continues to transform, I want to reiterate that Silvergate’s platform was purpose-built to manage stress and volatility,” said Alan Lane, Chief Executive Officer of Silvergate. “The SEN continues to operate as designed, and our support teams are available 24 hours a day, 7 days a week to help our customers during this period of adversity.”

Recently, Silvergate has been the subject of false and misleading statements. For factual and accurate information, Silvergate directs persons to its recent press releases, which are available on the Company's website at https://ir.silvergate.com in the Investor Relations section and Silvergate's most recent Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission.

About Silvergate

Silvergate Capital Corporation (NYSE: SI) is the leading provider of innovative financial infrastructure solutions and services for the growing digital asset industry. The Company’s real-time payments platform, known as the Silvergate Exchange Network, is at the heart of its customer-centric suite of payments, lending and funding solutions serving an expanding class of digital asset companies and investors around the world. Silvergate is enabling the rapid growth of digital asset markets and reshaping global commerce for a digital asset future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221128005747/en/

Investor Relations:

Hunter Stenback/Ashna Vasa

(858) 200-3782

investors@silvergate.com

Media:

Evann Berry

press@silvergate.com

Source: Silvergate Capital Corporation

FAQ

What is the deposit relationship between Silvergate and BlockFi as of November 2022?

Silvergate's deposit relationship with BlockFi is less than $20 million of its total digital asset deposits.

How much cash collateral does Silvergate hold for BlockFi?

Silvergate maintains a $10 million cash collateral account to support ACH services provided to BlockFi.

What is the status of SEN Leverage loans at Silvergate?

SEN Leverage loans at Silvergate have performed with zero losses and no forced liquidations.

Who is the CEO of Silvergate Capital Corporation?

Alan Lane is the Chief Executive Officer of Silvergate Capital Corporation.