In order to maintain high balance sheet liquidity, Silvergate will revise its dividend policy. The suspension of payments is related to previously announced losses of $ 1 billion for the last quarter and the layoff of 200 workers.
Representatives of the California-based cryptocurrency bank Silvergate said that the suspension of dividend payments will affect holders of Series A preferred shares with a fixed non-cumulative constant rate of 5.375% “in order to preserve capital.”
The company’s executives explain that the decision to take such a serious step was forced by the situation in the cryptocurrency market. Representatives of the cryptobank assure that the cash balance is now “in excess in relation to assets on user deposits.” As market conditions change, the bankers warn, the policy may be revised.
News of the deferred dividend has already weighed on Silvergate stocks. On the same day, preferred shares fell in price by 22.71%, and ordinary shares by 3.76%.
Earlier, against the background of the crypto winter, the OSL exchange announced a staff reduction of 30%.
Source: Bits
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