Silvergate Suspends Series A Preferred Stock Dividend

Rhea-AI Summary

Silvergate Capital Corporation (NYSE: SI) has announced the suspension of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. This decision is aimed at preserving capital amid recent volatility in the digital asset sector. The Company maintains a strong liquidity position, holding cash exceeding its digital asset customer-related deposits. The Board of Directors will reassess the dividend payments as market conditions evolve, underscoring the company's commitment to ensuring financial stability and navigating challenges in the industry.

Positive

• Company maintains a cash position exceeding digital asset customer deposits.

Negative

• Suspension of dividend payments raises concerns over company cash flow and investor confidence.

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 that the Company has suspended the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital. This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry. The Company continues to maintain a cash position in excess of its digital asset customer related deposits.

The Company’s Board of Directors will re-evaluate the payment of quarterly dividends as market conditions evolve.

About Silvergate

Silvergate Capital Corporation (NYSE: SI) is the leading provider of innovative financial infrastructure solutions and services for the 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 digital asset companies and investors around the world. Silvergate is enabling digital asset markets and reshaping global commerce for a digital asset future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126006026/en/

Investor Relations:

Edelman Smithfield for Silvergate

(858) 200-3782

investors@silvergate.com



Media:

Edelman Smithfield for Silvergate

press@silvergate.com

Source: Silvergate Capital Corporation

FAQ

Why did Silvergate Capital Corporation suspend its dividends?

Silvergate suspended its dividends to preserve capital due to recent volatility in the digital asset industry.

When will Silvergate Capital Corporation re-evaluate its dividend payments?

The Board of Directors will re-evaluate dividend payments as market conditions evolve.

What is the current cash position of Silvergate Capital Corporation?

Silvergate maintains a cash position that exceeds its digital asset customer-related deposits.

What impact does the suspension of dividends have on investors?

The suspension may raise concerns regarding cash flow and could affect investor confidence in the company.