related posts
112 sats \ 0 replies \ @IgnaciobTato 3 Mar 2023
The cleaner the future the better. The BIG PURGE: Terra, Genesis, FTX, Silvergate, etc.
reply
31 sats \ 0 replies \ @TheBTCManual 3 Mar 2023
Lol bring it on, I live for the mayhem, the more bad news the better, if we can dip below 20k again I am all for it, will be well worth the blow up, I need more cheap sats my wages ain't growing fast enough
reply
10 sats \ 0 replies \ @ursuscamp 2 Mar 2023
Terra rekt everything.
reply
0 sats \ 0 replies \ @TNStacker 3 Mar 2023
Folks should believe them. They won't make it.
reply
0 sats \ 0 replies \ @kilianbuhn 2 Mar 2023
Silvergate is such an interesting story imo
Being the fiat world "dealer" guy that provides fiat to all Bitcoin players could be an insanely profitable business model.
It's a mystery why not everybody (JPM, GS, MS...) does it and arbitrages the profitability away.... Yet none of them did 🤔🤔🤔
reply
0 sats \ 4 replies \ @kr 2 Mar 2023
curious to know if anyone on here has strong opinions about Silvergate’s survival odds.
looks like they’re down 45% pre-market today.
reply
3400 sats \ 3 replies \ @Jonathan_Adly 2 Mar 2023
As of 12/31 they had 2.8b in cash, and 10b in “securities” of unknown quality.
On the other side, they had 10b of deposits and 4.2B of short-term obligations.
My guess is they pledged their securities and got that 4.2B. No one will give them anymore money.
So, they have very little cash cushion. If their securities drop, they will be margin called and go out of business.
Wouldn’t really touch it at this point, because the odds of their random securities dropping as the Feds continue to raise rates are pretty high.
Normally, they would be acquired before bankruptcy, but with choke point 2.0 in full swing, not many people would want to touch it.
reply
12 sats \ 0 replies \ @BlokchainB 2 Mar 2023
Thanks for this analysis. I was about to buy 100 shares thinking it is a distressed asset that COULD recover. But the liquidity crunch makes it look very risky.
reply
10 sats \ 1 reply \ @kr 2 Mar 2023
appreciate the reasonable assessment.
the ongoing investigations aren’t helping either, and just saw on Twitter that Coinbase dropped them as a banking partner.
i hope they can pull off a miracle and stay alive, but the odds do seem to be stacked against them.
reply
0 sats \ 0 replies \ @Jonathan_Adly 2 Mar 2023
Just looked at their securities mix - 47% are mortgages which would sell at a massive loss if liquidated. It really does look terrible for them, and they are entering a death spiral.
reply