In a press release before the market opened, management said they were suspending dividend payments on 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. This is a form of equity that pays a dividend, so there's an obligation to pay the dividend, but it's not as burdensome as debt. The move comes as investors are seeing customers flee Silvergate Capital, which could turn into a run on the bank. Unlike most banks, Silvergate has systemic risks from industry players that we may not know about.
The bank is looking to preserve capital as it navigates recent volatility in the crypto industry.
LA JOLLA, Calif., January 27, 2023--Silvergate Capital Corporation (the "Company" or "Silvergate") (NYSE: SI), the leading provider of innovative financial infrastructure solutions to the digital asset industry, today announced that the Company has suspended the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital. This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital