Silvergate Capital shares jump after BlackRock reports increased stake in the crypto bank

Silvergate Capital jumped connected Tuesday day aft BlackRock reported a 7% involvement successful the crypto bank. 

Shares of Silvergate roseate 7.5% aft a Jan. 31 filing with the Securities and Exchange Commission became public. BlackRock accrued its holding successful Silvergate to 7.2%, an summation from the 5.9% it antecedently reported, according to the filing. 

More than 70% of Silvergate Capital shares that are freely disposable to commercialized are sold short, according to FactSet data.

While cryptocurrencies and related stocks person enjoyed a beardown January rally this year, Silvergate has been struggling successful the aftermath of the FTX blowup. Shares of the slope slid sharply November, erstwhile the crypto speech FTX, a Silvergate customer, collapsed successful scandal.

Silvergate shares are present down astir 20% successful 2023. They are disconnected by astir 87% implicit the past year.

Earlier this month, shares of Silvergate tanked much than 40% aft the slope reported massive withdrawals successful the 4th quarter successful airy of the FTX collapse. Despite the emergence successful cryptocurrencies and stocks this month, capitalist assurance is inactive shaken.

BlackRock, the largest plus manager successful the world, has maintained a affirmative stance toward crypto and blockchain technology. In summation to being an capitalist successful FTX, precocious past summertime the steadfast launched a backstage spot to springiness clients exposure to spot bitcoin.