Can Silvergate Survive Crypto Contagion?

Nov. 22, 2022 3:56 AM ETSilvergate Capital Corporation (SI)46 Comments
Lyster Analytics profile picture
Lyster Analytics


  • Silvergate is materially exposed to FTX and Gemini.
  • Silvergate is likely to run out of cash reserves given the extreme levels of withdrawals that its customers are experiencing.
  • Silvergate's non-cash assets are mostly comprised of illiquid financial assets whose value is uncertain.
  • Silvergate's CEO Alan Lane sold $1.5 million worth of shares in Silvergate in Q3 of 2022.
  • Therefore, I believe now is a good time to exit, buy puts, or outright short SI.

mature adult man working from office ( with laptop, paperwork, Negative Emotion)

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In my opinion, Silvergate (NYSE:SI) is probably in the midst of an existential liquidity crisis as we speak and, as a result, I regard Silvergate as a strong sell. In this article, I will dive into their balance

Silvergate Financials

Silvergate Balance Sheet (SEC Filings)

Gemini SEN Network

Gemini SEN Network (Gemini)

Silvergate's Illiquid securities-for-sale

Silvergate's Illiquid securities-for-sale (SEC Filings)

Alan Lane Silvergate

Alan Lane SI Acquisitions (, SEC)

Alan Lane Silvergate

Alan Lane SI Disposals (, SEC)

Silvergate Put Options

Silvergate 17th Feb 2023 Put Options (Yahoo Finance)

Silvergate borrow cost

Silvergate borrow cost (stocksera, Interactive Brokers)

This article was written by

Lyster Analytics profile picture
Interested in macro, alternative data and options. Back writing for Seeking Alpha having had two years away from financial narratives, forming fresh new perspectives and opinions.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in SI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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