Shares in crypto-bank Silvergate Capital (NYSE:SI) continued to feel the love from investors after the stock got a Valentine’s day treat: news that a Wall Street market-maker had taken a meaningful stake in the company.
Crypto stocks have found themselves left on the shelf more often than not in recent times, largely in the wake of the FTX collapse and more broadly in the crypto bear run that saw Bitcoin and many alt-coins routed since their mid-pandemic peaks.
In a market conditioned to expect dramatic outflows, it was a boon for Silvergate stock to see a New York finance mainstay holding onto a meaningful interest - albeit the precise nature of the holding is less clear, as a Reuters’ report claimed it was the result of market making operations rather a ‘directional investment’, citing a source familiar with the matter.
Citadel on Tuesday reported a 5.5% stake in Silvergate, which would be worth around US$25 million.
It follows separate reports on Monday notifying of a Soros Fund Management option position against Silvergate (puts, for the future sale of some 100,000 Silvergate shares).
Today, in New York, Silvergate stock was up more than 20% changing hands at US$20.87 each.