What is the current status of MicroStrategy’s exposure to Silvergate bank?

What is the current status of MicroStrategy’s exposure to Silvergate bank?

Bitcoin Mining
May 9, 2023 by Admin
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MicroStrategy Reassures Investors of ‘Minimal Exposure’ to Silvergate MicroStrategy, an enterprise analytics and mobility software company, has clarified that it has ‘minimal exposure’ to Silvergate, following concerns raised by investors about the bank’s role in the cryptocurrency industry. Concerns about Silvergate Silvergate is a California-based bank that exclusively serves the cryptocurrency industry, providing banking services
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MicroStrategy Reassures Investors of ‘Minimal Exposure’ to Silvergate

MicroStrategy, an enterprise analytics and mobility software company, has clarified that it has ‘minimal exposure’ to Silvergate, following concerns raised by investors about the bank’s role in the cryptocurrency industry.

Concerns about Silvergate

Silvergate is a California-based bank that exclusively serves the cryptocurrency industry, providing banking services to a range of companies involved in the space. However, concerns have emerged recently about the bank’s clients, and whether their businesses are sustainable in the long-term. This has led some investors to question MicroStrategy’s involvement with Silvergate, and whether the company’s significant holdings of Bitcoin could be at risk.

MicroStrategy’s Response

In a statement released on Tuesday, MicroStrategy clarified that it currently holds 92,079 Bitcoins, with an average cost of $24,450 per Bitcoin. The company also noted that it uses Coinbase as its primary Bitcoin custodian, and that it has ‘minimal exposure’ to Silvergate.

The statement reads: “We would like to reassure investors that we have minimal exposure to Silvergate Bank and that our business operations are not dependent on the bank or any other single financial institution. Furthermore, we have taken extensive measures to protect the security of our Bitcoin holdings”.

Investor Response

The statement from MicroStrategy appears to have reassured investors, with the company’s stock price rising by approximately 4% following the announcement. This suggests that the concerns around Silvergate, at least in relation to MicroStrategy, have been largely laid to rest.

Conclusion

MicroStrategy’s response to investor concerns about Silvergate provides a valuable example of how companies can reassure their shareholders about potential risks. By being transparent about their exposure to specific entities, businesses can help to alleviate concerns and maintain the confidence of their investors.

  • MicroStrategy has clarified that it has ‘minimal exposure’ to Silvergate.
  • The statement from MicroStrategy appears to have reassured investors, with the company’s stock price rising by approximately 4% following the announcement.
  • The response to investor concerns about Silvergate provides a valuable example of how companies can reassure their shareholders about potential risks.

Overall, it seems that MicroStrategy’s Bitcoin holdings are not under significant threat, and that the company remains confident in the security of its cryptocurrency investments.