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Reports are circulating that a cryptocurrency exchange is interested in acquiring Silvergate Capital Corps trade processing, causing a company stock price surge. This development follows a tumultuous period for the lender, which experienced a significant drop in share prices after disclosing its exposure to FTX in early March. J.P. Morgan responded by downgrading Silvergates stock rating to underweight and withdrawing its price target, citing concerns about the companys capitalization.

The challenges faced by Silvergate illustrate the interconnectedness and vulnerability of the crypto banking industry. The collapse of FTX left Silvergate exposed, leading to a nearly 50% decline in its stock prices. However, if the company can weather the storm, it may yield significant returns if the cryptocurrency industry enters a new bullish cycle. Since shifting its focus to serving the crypto sector in 2013, Silvergate has increased alongside the industry.

While the news of a potential buyout has caused a surge in Silvergates stock prices, it remains to be seen if the company can bounce back from its recent challenges and demonstrate its resilience.

The stock performance of SI or Silvergate Capital Corporation has been a topic of interest for investors and analysts alike. According to CNN Money, the stock has been on a rollercoaster since its initial public offering (IPO) in November 2019.

Initially priced at $12 per share, SIs stock price soared to $33.44 in February 2020. However, the outbreak of the COVID-19 pandemic led to a sharp decline in the stock price, which fell to a low of $5.87 in March 2020. Since then, the stock has been on a steady upward trajectory, reaching a high of $150.09 in February 2021.

The stocks performance can be attributed to several factors. Firstly, Silvergate Capital Corporation is a leading provider of innovative financial infrastructure solutions and services to the digital currency industry. As the popularity of cryptocurrencies like Bitcoin and Ethereum continues to grow, so does the demand for the services offered by Silvergate.

Secondly, the companys financial performance has been impressive. In Q4 2020, SI reported a net income of $14.1 million, up from $3.1 million in the same period in 2019. The companys assets increased from $2.1 billion in Q4 2019 to $4.2 billion in Q4 2020.

The companys strategic partnerships have also contributed to its stock performance. In February 2021, Silvergate announced a partnership with Fidelity Digital Assets to offer Bitcoin-backed loans to institutional investors. This partnership is expected to drive the demand for Silvergates services and boost its revenue growth.

In conclusion, the stock performance of Silvergate Capital Corporation has been impressive, with the companys innovative financial infrastructure solutions and services to the digital currency industry driving demand for its services. The companys financial performance and strategic partnerships have also contributed to its stock performance. As the popularity of cryptocurrencies continues to grow, Silvergate is well-positioned to capitalize on this trend and deliver value to its shareholders.

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Cryptocurrency Exchange Eyes Acquisition of Silvergate Capital ... - Best Stocks

Bitcoin has rallied nearly 70% so far this year and industry insiders who spoke to CNBC remain bullish, with one saying the world's biggest cryptocurrency could reach new heights.

Bitcoin previously hit its all-time high of $68,990.90 in November 2021. Since then it has fallen about 60%.

Marshall Beard, chief strategy officer at U.S.-headquartered cryptocurrency exchange Gemini, said $100,000 could be a possibility for bitcoin.

"I think bitcoin probably breaks all-time highs this year," Beard said, adding that the $100,000 price figure is an "interesting number."

Beard said that if bitcoin gets to its previous record high of near $69,000, "it doesn't take much more for it to lift up" to $100,000.

Bitcoin would need to rally around 270% to hit $100,000.

Paolo Ardoino, chief technology officer at stablecoin issuer Tether, said bitcoin could "retest" its all-time high near $69,000.

The predictions of new record highs mark a more optimistic outlook than in January when industry executives told CNBC that they expected 2023 to be a year of caution.

Part of the industry's positive view on bitcoin right now actually stems from how the asset has performed during the banking turmoil sparked by the collapse of Silicon Valley Bank and the failure of two crypto-friendly lenders Silvergate Capital and Signature Bank.

Instead of crashing, bitcoin rallied.

Bitcoin proponents say this is evidence that bitcoin is offering an alternative to the traditional banking system as a place for people to keep their money safe.

"I think the rally is explicable by saying, people have got freaked out by the banking system by the collapses," Oliver Linch, CEO of BittrexGlobal, told CNBC in an interview at Paris Blockchain Week on Thursday.

Cryptocurrency industry insiders predict bitcoin could hit a new all-time high in 2023 and possibly reach $100,000. It comes after a noted investor bet that the digital currency could go to $1 million in 90 days.

Chris Ratcliffe | Bloomberg | Getty Images

For many years, bitcoin advocates have argued bitcoin is a form of "digital gold" a safe-haven asset that can provide investors a hedge against inflation and an investment in times of turmoil. But over the past few years, bitcoin has traded in correlation with stocks, in particular the tech-heavy Nasdaq.

There are now signs of decoupling with bitcoin massively outperforming the Nasdaq, many other risk-assets and gold this year.

But bitcoin also got a boost on hopes the banking crisis maybe reduce the U.S. Federal Reserve's ability to be as aggressive on interest rate rises, which would be supportive for risk assets like cryptocurrencies.

Discussion of where the digital coin's price could go this year has been rife since Balaji Srinivasan, an investor and the former technology chief at Coinbase, wagered on Mar. 17 that bitcoin would be worth $1 million or more in 90 days. He bet $2 million.

The wager was in response to a Twitter user who said that they would bet $1 million that the U.S. does not enter hyperinflation.

Srinivasan argued that the "world redenominates on Bitcoin as digital gold" as hyperinflation kicks in, erodes the value of the U.S. dollar, and nations, individuals and companies begin to buy large amounts of bitcoin. Hyperinflation is the massive rise in prices in an economy.

I think for bitcoin to be a million dollars in 90 days, some crazy things are happening in the world, which we don't want.

Marshall Beard

Chief strategy officer, Gemini

A $1 million price on bitcoin would represent a roughly 3,600% increase from the digital currency's current price.

Most people have poured cold water on this prediction.

Gemini's Beard said "there's probably a world where bitcoin hits a million dollars" but not in 90 days as Srinivasan wagered.

"I think for bitcoin to be a million dollars in 90 days, some crazy things are happening in the world, which we don't want," Beard said, adding that it could take 10 years to get anywhere near that figure.

Tether's Ardoino echoed the sentiment that if bitcoin were to hit $1 million in 90 days, it would likely mean an unusual economic event.

"I'm kind of skeptical about that, because honestly, I wouldn't even hope for that," Ardoino told CNBC in an interview at Paris Blockchain Week, that aired Thursday.

"Because if bitcoin would reach such a high price level, [it] would mean that the entire economy will crumble. I'm not sure [that] is the world that we want to live in."

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Bitcoin at $100,000? Insiders say the cryptocurrency could test new highs this year - CNBC

After skyrocketing earlier this week, Bitcoin fell to just above $27,000 on Wednesday afternoon as the Federal Reserve announced a rate hike of a quarter of a percentage point.

After reaching an intraday high of $28,803 before the Feds announcement, the most popular cryptocurrency dropped about 3.5%, to $27,100, on the news. Fed Chairman Jerome Powell also indicated that a rate cut was not likely for the rest of the year.

Rate cuts are not in our base case, Powell said.

The second-leading cryptocurrency, Ether was also down about 3.8%, to $1,700, after reaching an intra-day high of $1,821 just days after it hit a seven-month high, according to CoinMarketCap.

The two largest cryptocurrencies by market cap had seen a recent boost following the collapse of Silicon Valley Bank on March 10. Advocates pointed to the decentralized nature of some cryptocurrencies as an alternative to the centralized banks like SVB, and later Signature Bank, that needed to be backstopped by the Federal Reserve.

On Wednesday, Powell emphasized that SVBs management failed badly by growing the bank quickly, exposing it to significant liquidity risks and interest rate risks without proper hedging.

He added that an investigation into SVBs failure is being led by Vice Chair for Supervision Michael Barr. Once the review concludes, the Fed will decide what policies to implement to prevent a similar situation, he said.

Powell was particularly interested in the speed of the bank run on Silicon Valley Bank, which he said was faster than historical record would suggest.

My only interest is that we identify what went wrong here, he added. How did this happen, is the question. What went wrong?

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Bitcoin teeters near $27,000 as Fed raises interest rates and Powell says cuts unlikely in 2023 - Fortune

Cryptocurrencies

Jake Paul and Ne-Yo among stars accused in case as most agree to pay settlement without admission or denial

Wed 22 Mar 2023 21.48 EDT

The Securities and Exchange Commission has filed charges against a handful of celebrities including Lindsay Lohan, Jake Paul and Ne-Yo for violating laws in touting cryptocurrencies.

On Wednesday, the SEC filed the charges against the celebrities as part of its broader charges filed against the crypto entrepreneur Justin Sun and three of his companies: Tron Foundation Ltd, BitTorrent Foundation Ltd, and Rainberry Inc (formerly BitTorrent) for the unregistered offer and sale of the crypto asset securities Tronix (TRX) and BitTorrent (BTT).

The SEC charged eight celebrities, who also included the rappers Soulja Boy and Lil Yachty, the singers Austin Mahone and Akon, and the adult film star Kendra Lust for illegally touting TRX and/or BTT without disclosing that they were compensated for doing so and the amount of their compensation.

According to the SEC, Sun and his companies offered and sold the crypto asset securities as investments through various unregistered bounty programs, which directed interested parties to promote the tokens on social media, join and recruit others to Tron-affiliated Telegram and Discord channels, and create BitTorrent accounts in exchange for TRX and BTT distributions.

This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure, the SEC chair, Gary Gensler, said in a statement.

All mentioned celebrities except for Soulja Boy and Austin Mahone agreed to pay a total of over $400,000 in disgorgement, interest and penalties to settle the charges, without admitting or denying the SECs findings.

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SEC charges celebrities including Lindsay Lohan over cryptocurrency endorsements - The Guardian

The Securities and Exchange Commission (SEC) has issued an alert reminding investors that cryptocurrency offerings may be illegal because they are not registered with the regulator.

The move is in line with the string of regulatory actions brought against numerous crypto platforms since October 2022, when FTX famously imploded. To date, the regulator has gone after Terra, Coinbase, Kraken, Paxos, and Binance, claiming the companies violated investor protection laws or had illegal securities offerings. Just yesterday, the SEC took action against the founder of Tron and celebrities that touted investments in the cryptocurrency.

According to the alert, crypto exchanges may offer a combination of services that are normally offered by separate firms. By offering exchange, broker-dealer and custodial functions, platforms create conflicts of interest that pose a risk to investors.

SEC-registered entities must comply with a number of rules to protect investors. However, according to the regulator, none of the major crypto asset entities is registered with the SEC as a broker-dealer, exchange, or investment adviserso investors may not get the protections afforded by the rules applicable to these entities.

The regulator also addressed proof of reserves, which has been commonly used to show an entity has enough reserves to cover the amount held in customer accounts. This proof assures customers that their funds are safe and available to withdraw on demand.

These types of services may not provide any meaningful assurance that these entities hold adequate assets to back their customers balances.Further, crypto asset entities might use these in lieu of audited financial statements in order to obscure and confuse customers about the safety of their assets, the SEC said.

The alert explains proof of reserves does not provide the same level of assurance as an audit of financial statements. Proof of reserves should not be relied upon by investors to conclude a crypto asset entity has sufficient reserves to cover customer liabilities, according to the SECs statement.

The warning from the SEC is nothing new. It simply puts the legality of crypto investing under a more laser-focused microscope.

According to the SEC's Office of Investor Education and Advocacy, crypto asset securities are still a risky investment. They warn investments in crypto asset securities, in addition to being exceptionally volatile and speculative, may lack important investor protections on platforms where they can buy, sell, borrow, or lend them.

Individual investors who participate in transactions involving crypto assets, including crypto asset securities, may face a significant risk of loss and are urged only to invest what they can afford to lose completelysomething the crypto industry has preached for years.

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SEC Urges Caution on Crypto Investing - Investopedia