Silvergate Bank Eyes $461M in Public Offering After Filing to Sell 3.3M Shares

The California state-chartered bank, Silvergate, is eyeing to secure $461.3 million as per the latest filing with the US Securities and Exchange Commission (SEC) through the sale of 3.31 million of common stock. The proposed maximum offering price per share is $145.

Silvergate’s Public Offering

The official document revealed that the financial institution had granted the underwriters 30 days to buy over 496.6k additional shares of its common stock. It also estimated the generation of approximately $461 million net proceeds from this offering after underwriting discounts deductions and evaluated offering expenses payable by Silvergate.

However, the figures may be as high as $530.2 million if the underwriters “exercise in full their option to purchase additional shares.”

Silvergate plans to deploy the net proceeds from this offering to further boost its regulatory capital levels in addition to other general corporate purposes. A part of the proceeds may also be offered to assist the company’s expansion organically or through strategic acquisitions. Silvergate also intends to use the capital for Bank’s SEN Leverage product, custody, and other services associated with digital assets.

Serving as joint book-running managers for the offering are Goldman Sachs, JP Morgan Securities, and Keefe, Bruyette & Woods, A Stifel Company.

The filing read,

“This is a public offering of shares of Class A Common Stock, or common stock, of Silvergate Capital Corporation. We are offering all of the shares in the offering. Our common stock is listed on the New York Stock Exchange, or NYSE, under the ticker symbol “SI.” The last reported sale price of our common stock on December 6, 2021, as reported on NYSE, was $165.37 per share.”

Silvergate Joins Hands with CryptoCom

Silvergate has emerged as a major crypto-focused bank that gained significant popularity for supporting the rollout of El Salvador’s crypto wallet Chivo.

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The latest development comes a week after Silvergate announced a partnership with the digital asset exchange CryptoCom. The main objective behind the move was to introduce USD deposits and withdrawals to the bank’s institutional consumer base. This new feature would enable CryptoCom’s institutional clients to transfer USD funds from their bank accounts to the exchange and vice versa, free of cost.

Besides, Silvergate announced joining forces with Facebook’s digital currency project, the Diem Association, to release a stablecoin pegged to the USD in May this year.

Featured Image Courtesy of SDBJ