A source told CoinDesk the real-time payments platform, popular with crypto businesses, will continue to be offered under the newly established Signature Bridge Bank entity.
Replacing Silvergate’s Network Is a Challenge for Crypto Industry: JPMorgan
Some of the services provided by Silvergate will migrate to other banks such as Signature Bank, Provident Bancorp, Metropolitan Commercial Bank and Customers Bancorp, the report said.
Crypto.com Struggles to Maintain Fiat On-Ramps in the Face of Crypto Banking Crisis
The exchange’s current banking partner is only accessible to users based in the European Economic Area (EEA).
Signature Bank, Stablecoins Might Benefit From Silvergate Exchange Network’s Demise
The bank’s exchange network, SEN, had a simple premise and played a crucial role from its inception in 2018 through its shutdown on Friday. Analysts and experts are handicapping who might fill the void.
Dapper Removes ACH Withdrawal Option, Citing Circle
Wire transfer and USDC remain an option for Dapper users.
MicroStrategy, Tether adds to firms distancing from Silvergate as stock dives 57%
MicroStrategy confirmed that none of its 130,000 BTC is custodied by Silvergate. However, the firm does have a loan to pay off to the bank by Q1 2025.
MicroStrategy Acquires 4,167 BTC And Marathon Holds 1,259 Self-Mined BTC
Another day, another MicroStrategy bitcoin buy. The Michael Saylor-led company is relentless in its BTC accumulation strategy. In a similar position, the bitcoin mining giant Marathon Digital Holdings doubles down on its no-selling policy. Which is also a BTC accumulation strategy. Will these two giants go down in history as pioneers?
Related Reading | Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become Corporate Vehicle
These companies are adopting the Bitcoin Standard as a way of life. Let’s look at MicroStrategy and Marathon’s stats, where do these new acquisitions put them on the BTC leaderboard? And, how did the market react to both news?
MicroStrategy, Even More Aggressive
The man himself, Michael Saylor announced the acquisition via his very active Twitter:
“MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per bitcoin. As of 4/4/22 MicroStrategy hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin.”
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
— Michael Saylor (@saylor) April 5, 2022
To clarify, MacroStrategy is a MicroStrategy subsidiary. This seems to be the buy the company did with the $200M bitcoin-collateralized loan they took a week ago. Our sister site Bitcoinist explains and clarifies:
“The company took the loan via MacroStrategy, a subsidiary created with the purpose of holding its parent company’s Bitcoin funds. As per the release, the $205 million loans were issued under the Silvergate Exchange Network (SEN) and its Leverage program and will mature on March 23, 2025.
The SEN was launched in 2020, the release clarified, to address the demand for BTC collateralized loans.”
Even though 129,218 BTC is a lot for just one entity, it’s beneficial to remember that those are not Michael Saylor’s coins. The treasury belongs to MicroStrategy, a public company owned by many. Still, they own almost triple what Tesla owns. And MicroStrategy keeps on buying.
Many people talk about buying the dip. But when the dip comes, they panic and sell (as oppose to buy).
This is how you do it. https://t.co/VcAB6NeQoc
— CZ Binance (@cz_binance) April 5, 2022
Binance’s CEO Changpeng Zhao reacted to the news with high praise. “Many people talk about buying the dip. But when the dip comes, they panic and sell (as oppose to buy). This is how you do it,” he wrote.
BTC price chart for 04/05/2022 on Kraken | Source: BTC/USD on TradingView.com
Marathon, Even More “Hodling”
In a recent press release, Marathon Digital Holdings announced very healthy-sounding numbers. The company “produced a record 1,258.6 self-mined bitcoin during Q1 2022, a 556% increase from 191.8 self-mined bitcoin in Q1 2021 and a 15% sequential increase from 1,098.2 self-mined bitcoin in Q4 2021.” Plus, in March alone, they “successfully deployed 1,320 miners.”
About the increase, the company’s CEO Fred Thiel said:
“In the first quarter of 2022, we increased our bitcoin production 15% from the prior quarter and produced a record 1,259 bitcoin even as the global hash rate rose by approximately 17%,”
Where does that put them on the bitcoin leaderboard? Well, Marathon “increased total bitcoin holdings to approximately 9,373.6 BTC with a fair market value of approximately $427.7 million.” The company’s accumulation strategy began in October 2020, the last time Marathon sold bitcoin.
Related Reading | Allied Payment Partners NYDIG, Adds Bitcoin To Corporate Treasury
MicroStrategy, The Leaderboard, And The Market
According to the Bitcoin Treasuries list, these acquisitions put both companies at the bookends of the Top 5. That is:
- MicroStrategy, 125,051 BTC
- Tesla Inc., 42,902 BTC
- Galaxy Digital Holdings, 16,400 BTC
- Voyager Digital LTD, 12,260 BTC
- Marathon Digital Holdings, 8,956 BTC
Nevertheless, the market seems to have reacted negatively to the news. At 9 am, BTC traded in the $47K range. It dropped continually during the day and around noon it was trading in the $45.5K range. Is MicroStrategy to blame? Or was it just a coincidence?
Featured Image by terimakasih0 on Pixabay | Charts by TradingView
Binance.US Joins SEN, Silvergate’s 24/7 Crypto Trading Club
Binance.US, the American affiliate of the world’s largest crypto exchange, has joined the Silvergate Exchange Network (SEN), a 24/7 instant settlement network used by some of the largest trading entities in the space. SEN, which replaces clunky wire transactions by allowing corporates to instantly move USD between crypto exchanges including on nights and weekends, saw […]
Silvergate Bank Sees 40% Increase in Deposits From Digital Currency Customers
Silvergate Bank added $586 million in new deposits from firms and individuals in the cryptocurrency industry in the third quarter of 2020.
Stablecoin Growth Knocks Silvergate Exchange Network Volume Over $100B
All-time transaction volume on the Silvergate Exchange Network (SEN), a fiat pathway into bitcoin markets, has reached $100 billion.
Silvergate’s Bitcoin-Backed Lending Product Grew 80% in the Last Quarter
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Institutional Trading House ErisX Joins Silvergate Exchange Network
ErisX, a crypto exchange for institutional investors, has joined the payments network of bitcoin-friendly Silvergate Bank.
Silvergate Adds 46 More Crypto Clients While Existing Customers Increase Deposit Levels
Silvergate Bank added 46 crypto customers in the first quarter and saw fee income and deposits increase from those customers because of “Black Thursday,” according to its earnings report released before market open on Wednesday.
Silvergate Bank Resolves Wire Transfer Issue That Kept Transactions in Limbo
Crypto-friendly Silvergate Bank resolved the last of its wire transfer issues Tuesday morning, said CEO Alan Lane.
Few Banks Will Touch Crypto Firms, But Silvergate Wants to Touch Bitcoin Itself
Silvergate made its name providing fiat banking services for crypto businesses. Now CEO Alan Lane wants the bank to handle digital assets themselves.
Silvergate Bank Adds 48 Crypto Clients in Q4 Even as Deposits Slip 4%
The La Jolla, Calif.-based bank, which went public on the New York Stock Exchange under the trading symbol SI in November, released its earnings report before market open on Wednesday.
In First ‘Pure Crypto’ Hire, Silvergate Bank Recruits Blockstream Liquid Network Exec
Benjamin Richman, formerly director of business development and partnerships at Blockstream, will help the crypto-friendly bank pursue its ambitious goals for serving the crypto industry.
Winklevoss Twins’ Gemini Exchange Joins Silvergate Crypto Lending Network
The Silvergate Exchange Network provides a frictionless way to transfer U.S. dollars “around the clock.”