Block.One and its founder buy nearly 9.27% of Crypto Bank Silvergate (SI)
- The founder and CEO of developer Block.one has acquired 571,351 shares of Silvergate (SI) crypto bank.
- Block.one purchased 2,363,186 shares. Both purchases represent about 9.27% of the company, making Blumer and Block.one the largest shareholders in Silvergate.
Brendan Bloomer, founder and CEO of Block.one, developer of the EOS blockchain, has acquired 571,351 shares of Silvergate (SI) crypto bank, according to US Securities and Exchange Commission (SEC) filings on Wednesday.
Blumer’s company Block.one also owns a stake in Silvergate, with 2,363,186 shares purchased on November 16th. It was the same day that Bloomer bought his shares. Both purchases – for a total of 2,934,537 shares – represent about 9.27% of the company.
According to CNN, the deal made Bloomer and his company the largest shareholders of the crypto bank.
The Bloomer purchase comes at a difficult time for Silvergate. Shares of the crypto bank are currently trading at around $28, more than 50% lower than they were in early November, according to data from Yahoo! Finance.
Selling pressure on Silvergate shares came after the collapse of the FTX cryptocurrency exchange. Although the company denies having much influence over the bankrupt exchange, it has about $1 billion in deposits at FTX. However, Silvergate has stated that it accounts for less than 10% of all its customer deposits.
Recently, Silvergate wants to launch its own stablecoin. He acquired the failed Meta stablecoin project, Diem, which the two companies had been working on for some time. He did this in hopes of integrating it into his Silvergate exchange network. However, in October, the world’s largest cryptocurrency bank said it was postponing the stablecoin project due to regulatory hurdles.
Silvergate’s newest and largest shareholders are believed to have carried out the largest Initial Coin Offering (ICO) in the history of crypto. Block.one raised about $4 billion for its EOS project back during the 2017-2018 ICO craze. However, the SEC later accused him of not registering his ICO. The company settled with the SEC for $24 million.
On the other hand
- It’s not yet clear what plans Bloomer and his company have for Silvergate.
Why should you care
Silvergate is the largest publicly traded cryptocurrency bank. Having new investors will help the company weather the current crypto storm.
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