It’s time to get out of crypto-focused bank Silvergate Capital , according to Wells Fargo. Analyst Jared Shaw double downgraded the stock to underweight from overweight, citing deposit outflows at the company because of sharply falling cryptocurrency prices. The analyst also slashed his price target on the shares to $70 from $115, implying downside of 11.3% from Wednesday’s close. Silvergate shares dipped 3.7% in the premarket. “Crypto Winter [is] Freezing Our Enthusiasm,” Shaw wrote. “We continue to believe these are early days of broader digital asset adoption, but the growth outlook for SI as a pure-play crypto banking solution is significantly limited in the current environment.” Silvergate Capital is “among the most asset sensitive banks,” but cratering cryptocurrency prices curtail any gains from higher interest rates, according to Wells Fargo. For example, the price of bitcoin is down 56% this year, according to Coindesk. Meanwhile, shares of Silvergate Capital are down...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...