Silvergate CEO says crypto-focused bank has ample liquidity, resilient balance sheet

Alan Lane, the CEO of digital asset-focused bank Silvergate Capital ( NYSE: SI ), said Monday that his company has an adequate liquidity position as well as a resilient balance sheet despite market turmoil triggered from the implosion of crypto exchange FTX ( FTT-USD ). His remarks come as "there has also been plenty of speculation – and misinformation – being spread by short sellers and other opportunists trying to capitalize on market uncertainty," he wrote in a public letter . Lane pointed out that Silvergate ( SI ) holds cash and securities that exceed its digital asset-related deposit liabilities in the event of increased deposit outflows. Last week, the bank disclosed that its average quarter-to-date digital customer deposits slumped to $9.8B (excluding FTX deposits) as of November 15 from $11.9B as of September 30. But Morgan Stanley recently lowered its 2023 EPS estimate for SI, as its digital deposit balances potentially have further room to fall, and its sources of liquidity to fund deposit outflows are "more expensive than SI's zero-cost digital deposits, and will weigh on earnings." "While this has been a turbulent time in the digital asset industry, our customers’ deposits are, and have always been, safely held," Lane emphasized. SI stock edged down 0.3% in extended trading hours and plunged nearly 84% year-to-date. Previously, (Nov. 28) some FTX customers were reportedly told to send wire transfers through Alameda, which was allowed to have accounts at Silvergate .