On Thursday, Silvergate Capital Corp reported a sharp drop in fourth-quarter crypto-related deposits, as investors alarmed by the collapse of FTX withdrew more than $8 billion in deposits, sending shares down more than 46%. The crypto-focused bank also announced that it would reduce its workforce by 40%, or approximately 200 employees, in order to cut costs amid an industry downturn. Its stock was last trading at $11.62 per share. Total deposits from Silvergate’s digital asset customers fell to $3.8 billion at the end of December, down from $11.9 billion at the end of September. To maintain liquidity, the company sold $5.2 billion in debt securities at a $718 million loss in the fourth quarter.
