Block.One and its founder buy almost 9.27% of Crypto Bank Silvergate (SI)
- The founder and CEO of developer Block.one has acquired 571,351 shares of crypto bank Silvergate (SI).
- Block.one acquired 2,363,186 shares. Both purchases represent around 9.27% of the company, making Blumer and Block.one the largest shareholders in Silvergate.
Brendan Blumer, the founder and CEO of Block.one, the developer of the EOS blockchain, has bought 571,351 shares of crypto bank Silvergate (SI), according to US Securities and Exchange Commission (SEC) documents. ) presented on Wednesday.
Blumer’s company, Block.one, also has a stake in Silvergate, with 2,363,186 shares purchased on November 16. This was the same day that Blumer bought his shares. Both purchases, for a total of 2,934,537 shares, represent close to 9.27% of the company.
The deal has made Blumer and his company the largest shareholders in the crypto bank, according to CNN.
The Blumer purchase comes at a difficult time for Silvergate. Shares of the crypto bank are currently trading at around $28, which is more than 50% lower than at the beginning of November, according to data from Yahoo! Finance.
Selling pressure on Silvergate shares came in the wake of the explosion on crypto exchange FTX. Although the company has denied having any large exposure to the failing exchange, it has about $1 billion in deposits with FTX. However, Silvergate has said that it accounts for less than 10% of all deposits from its clients.
Silvergate has been wanting to launch a stablecoin of its own lately. He bought Meta’s failed stablecoin project Diem, which the two companies worked on for some time. He did so in hopes of integrating it into his Silvergate Exchange Network. However, in October, the world’s largest bank specializing in cryptocurrency said it would postpone the stablecoin project due to regulatory hurdles.
Silvergate’s newest and largest shareholders are believed to have held the largest initial coin offering (ICO) in cryptocurrency history. Block.one raised around $4 billion for its EOS project in the ICO craze of 2017-2018. However, he was later charged by the SEC for failing to register his ICO. The company settled with the SEC for $24 million.
In the reverse
- It is unclear what plans Blumer and his company have for Silvergate.
why should you care
Silvergate is the largest public bank specializing in crypto. Having new investors will help you weather the current crypto storm.
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