While it is still early days in terms of broader digital asset adoption, Wells Fargo warned in a research study Thursday that the growth forecast for Silvergate Capital as a “pure-play crypto banking solution” is quite restricted. Wells Fargo downgraded the company from overweight to underweight and reduced its price objective from $115 to $70, sending shares down 5% to $74.95 early Thursday. Silvergate is one of the most asset-sensitive banks, but deposit outflows owing to lower cryptocurrency prices more than outweigh the benefits of higher interest rates, according to a Wells Fargo team led by Jared Shaw.
