MicroStrategy, Tether adds to firms distancing from Silvergate

MicroStrategy, Tether adds to firms distancing from Silvergate

Blockchain
September 22, 2022 by Admin
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How has the recent stock plunge impacted MicroStrategy’s relationship with Silvergate Bank? MicroStrategy, Tether Adds to Firms Distancing from Silvergate as Stock Dives 57%. The stock of Silvergate Capital, a firm that specializes in providing banking services to businesses in the cryptocurrency industry. It plunged by 57% due to a weak earnings report for Q2
MicroStrategy

How has the recent stock plunge impacted MicroStrategy’s relationship with Silvergate Bank? MicroStrategy, Tether Adds to Firms Distancing from Silvergate as Stock Dives 57%. The stock of Silvergate Capital, a firm that specializes in providing banking services to businesses in the cryptocurrency industry. It plunged by 57% due to a weak earnings report for Q2 2021

How has the recent stock plunge impacted MicroStrategy’s relationship with Silvergate Bank?

MicroStrategy, Tether Adds to Firms Distancing from Silvergate as Stock Dives 57%

The stock of Silvergate Capital. A firm that specializes in providing banking services. Businesses in the cryptocurrency industry, plunged by 57% due to a weak earnings report for Q2 2021. The stock price drop prompted some firms to distance themselves from the company, including MicroStrategy and Tether.

Business intelligence

MicroStrategy is a business intelligence software company that has invested heavily in Bitcoin. On July 29, 2021, the company revealed this in a filing with the United States. Securities and Exchange Commission (SEC) that it had sold its entire holding of Silvergate Capital stock. The filing also stated that MicroStrategy had no plans to purchase any additional Silvergate Capital shares in the future.

MicroStrategy’s decision to divest from Silvergate Capital comes after the company reported lackluster Q2 earnings. The firm’s net income for the quarter was $10.4 million, down from $12.2 million in Q2 2020. The drop in earnings was due to increased expenses related to their digital currency initiative.

Tether is a good MicroStrategy

Tether is a stablecoin that is pegged to the US dollar. It is widely used in the cryptocurrency industry, especially for trading on exchanges that do not support fiat currencies. Tether also revealed in a filing with the SEC that it had sold its entire holding of Silvergate Capital stock.

It is unclear why Tether chose to divest from Silvergate Capital, but it is likely that the company wanted to distance itself from the firm’s declining stock price. Tether has faced its own share of controversies in the past, such as doubts about its reserves and concerns about its impact on the cryptocurrency market.

The Takeaway

The stock price drop of Silvergate Capital has caused some firms in the cryptocurrency industry to distance themselves from the company. MicroStrategy and Tether have both sold their entire holding of Silvergate Capital stock, and it remains to be seen if other firms will follow suit.

  • MicroStrategy and Tether have divested from Silvergate Capital due to its weak Q2 earnings report.
  • Silvergate Capital provides banking services to businesses in the cryptocurrency industry.
  • The decline in Silvergate Capital’s stock price has led some firms to distance themselves from the company.

The cryptocurrency industry is known for its volatility, and the stock price drop of Silvergate Capital is just one example of this. However, the industry is also known for its resilience, and it is likely that it will continue to grow and evolve over time.