Silvergate Bank has been in the news a lot lately. There are reports it is being investigated for its dealings with FTX and Alameda. And bank is also laying off 40% of its staff, or 200 employees. But the bank still advertises its appetite for digital currency business and the Silvergate Exchange Network (SEN), which is tied up in a number of pending class action lawsuits.
And a wide range of well-known names in finance are buying shares in the bank.
This is odd. We do not normally see major mainstream financial services businesses associated with class action targets and some of the wilder allegations floating around.
At the same time, Silvergate's stock is 85% off the high from early 2022. Maybe it is good value. So let's explore a bit what is going on here.