BlackRock Increases Stake in Silvergate Capital to 7.2%, Shares Jump by 9.96%

BlackRock has increased its stake in Silvergate Capital to 7.2%, causing the bank’s shares to jump by 9.96%.

Larry Fink sitting in a chair and Alan Lane is in the background

BlackRock, the world’s biggest asset manager, has announced the increase of its stake in Silvergate Capital, a crypto-friendly bank, to 7.2%. This has caused the bank’s share (SI) price to jump by 9.96%.

BlackRock Owns 7.2% of Silvergate

In a filing with the United States Securities and Exchange Commission (SEC) on January 31st, BlackRock disclosed it now holds 2,285,197 SI or 7.2% of the bank’s total shares, up from 6.3% year-on-year.


The announcement from BlackRock caused the share price of Silvergate Capital to rise by around 9.96%. The spike caused the price of SI to hit session highs of $14.63. SI is now valued at $14.24.


The Start of a Recovery for Silvergate?

Although the crypto industry enjoyed a strong January rally to start this year, Silvergate (SI) continues to struggle in the aftermath of the FTX blowup, causing investors to withdraw their funds from the bank.

As a result of the struggle, Silvergate reported a net loss of $1 billion during the last quarter of Q4 2022. On January 27, Silvergate said it would suspend dividend payments to shareholders to remain liquid. 


However, the recent rally is a relief to investors who have seen the price of SI plummet by 87% since the start of 2022. The support from BlackRock could help it sail through the current tough market conditions.

On the Flipside

  • The largest shareholder of Silvergate remains Parnassus Fund Investor Shares, which has 9,938,796 shares, representing a 31.45% stake in the bank.

Why You Should Care

By increasing its shares in Silvergate, BlackRock communicates its belief in the crypto-friendly bank and the digital asset industry.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia