Silvergate Capital is poised to be a long-term winner in the crypto industry even as the the end case for the digital technology remains murky, according to Wells Fargo. Analyst Jared Shaw initiated coverage of the stock with an overweight rating, saying that Silvergate was “carving out a niche role” as an important bank in the crypto ecosystem. “While crypto’s role in the financial ecosystem is still up for debate, what cannot be ignored is the continuous adoption of crypto and blockchain-enabled products by some of the largest global institutions. ... Customer growth is the biggest driver of deposits at SI, which should drive much of the bank’s near-term profitability, as 77% of assets are securities (55% floating) and the loan book is also heavily floating-rate,” Shaw wrote. Crypto has been hit hard in recent months as the prices of major digital currencies have fallen 60% or more from the high point in late 2021. Silvergate’s stock has dropped 50% this year. However, Shaw said...
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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...