All articles tagged with #silvergate
MicroStrategy has repaid its $205 million loan to Silvergate at a 22% discount and purchased 6,455 BTC for $150 million, increasing its total Bitcoin holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin. The latest acquisition is the first such transaction so far in 2023. MicroStrategy also entered into an agreement with two companies to sell its aggregated class A common stock worth $500 million.
With major crypto-supportive banks in the US failing, crypto firms are turning to Swiss banks for financial support. Crypto-focused banks in Switzerland are reporting an increase in traffic from American clients, with SEBA Bank experiencing a "pronounced uptick." Arab Bank has also seen an increase in interest from crypto venture capital businesses since early March. However, regulatory issues around onboarding US clients ultimately restrict the bank to absorbing an estimated one or two more firms at most. Some industry leaders suspect that the sudden lack of major crypto banks in the US is a deliberate government attempt to drive the industry from its borders.
The voluntary liquidation of Silvergate, Silicon Valley Bank, and Signature has sent shockwaves through the cryptocurrency industry, as these banks were pillars of the sector. The demise of these institutions has left many crypto companies struggling to find banking partners. However, some industry executives believe that big banks can onboard crypto companies if they respect regulatory rules and show a willingness to comply. The collapse of these banks will also have implications for regulators in Asia, who are working on building a crypto licensing regime for retail traders.