Silvergate shares soar after Citadel Securities discloses 5.5% stake

Shares of Silvergate Capital (NYSE:SI) soared on Tuesday after news Citadel Securities had disclosed a 5.5% stake in the California-based crypto-friendly bank.

At the time of writing, the company’s shares were trading around $17.43, about 18% higher on the day. The company’s stock was thus 30% up in the past 30 days. However, SI is down 86% in the past year.

Citadel Securities buy 1.7 million shares in crypto-friendly bank Silvergate

Citadel Securities,  a leading market maker owned by billionaire investor Ken Griffin, reported via a Form 13G filing that it had acquired 1.73 million shares of Silvergate Capital. The stake, per Monday’s SI closing stock price of $14.71, was worth around $25 million.

According to documents filed with the US Securities and Exchange Commission (SEC), Citadel Securities’ Monday filing wasn’t the only report on company stake in Silvergate.

Trading firm Susquehanna also disclosed that it had taken roughly 2.37 million shares in the crypto-friendly bank, translating into a 7.5% stake. Also by Monday’s Silvergate shares closing price, Susquehanna’s stake is worth about $35 million.

Earlier this month, Silvergate Capital jumped double digits as a filing with the SEC showed investment giant BlackRock had increased its holding in the company from 5.9% to 7.2%.

Silvergate has been in distress in recent months following the crypto winter, and the move by Citadel comes at a time the company is trying to navigate the tough regulatory terrain that followed the collapse of crypto exchange FTX.

As Invezz reported in early January, Silvergate shares plummeted nearly 50% as crypto markets declined as investors withdrew billions from the bank amid negative news coverage. The company’s shares also fell as it announced a $1 billion loss in the fourth quarter of 2022.