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Showing posts with the label Silvergate Capital

Silvergate was down - blame it on Coinbase

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Over the past week, Silvergate Capital (SI) has lost more than 25% of its value. Is this a reason for its investors to be alarmed? I don't think so. The stock was down because investors rushed to buy Coinbase when it began trading publicly. They realized profits from SI's stock sale to diversify their exposure to crypto in the public markets. Yesterday, SI reported record earnings. SI, which serves major crypto firms such as Coinbase, Gemini and Kraken, added a record 135 digital currency customers in Q1–more than it added in all of 2020. It also reported sensational growth for SEN Leverage - it's latest product offering. SEN Leverage was the fastest growing product, with $196.5M in outstanding balance. SEN Leverage is expected to be a massive contributor in growing SI's revenues and profits. It's critical to serving clients who are looking to make leveraged bets in this current market under one roof. Bottom line: I remain bullish on SI despite the recent slump, and...
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Silvergate Capital (SI): All the exposure without the risk

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So far Bitcoin is having a decent 2021. It hit a record high of more than $52K last week, continuing the upward trajectory it has been on since April of last year, when a single Bitcoin cost less than $5K. That rise now means that the sum of all Bitcoins in existence is worth almost $1T and Bitcoin is now the 8th most valuable asset by market cap .  This time it's... different? These are some of the most dangerous words for any investor to believe wholeheartedly. Whether this latest Bitcoin rally proves more resilient than the previous highs is yet to be seen. In  a  previous article , I mentioned that t he long-term upside case for Bitcoin remains, at the very least, somewhat anarchic. While proponents of Bitcoin see limitless potential and critics see nothing but risk, I'm still on the fence. I haven't bought any Bitcoins yet but I did get indirect exposure to Bitcoin through Silvergate Capital Group (SI)- a bank in California. SI provides a lot of exposure because many...
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Bitcoin and the 99 other coins

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So far Bitcoin is having a decent 2021. It hit a record high of more than $41.5K last week, continuing the upward trajectory it has been on since April of last year, when a single Bitcoin cost less than $5K. That rise now means that the sum of all Bitcoins in existence is worth more than $700B.  Because Bitcoin dominates much of the media's attention, it can be easy to forget just how many other cryptocurrencies there are. A quick look through the full list from coinmarketcap reveals over 100 alternative cryptocurrencies with a "market cap" of more than $100M. Each hoping that their unique take on the core blockchain technology will be enough to propel them out of obscurity, to where Bitcoin is today. With some of the names on the list you can't help but think someone is having a joke, or planning something nefarious - there is a "dogecoin", "YEP COIN", "OMG" and even "SushiSwap" (???). This time it's... different? Some of ...
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Microsoft vs. Sony: The console battle and the gaming war

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Last week, Sony launched PlayStation 5 (PS5) on the same day that Microsoft dropped its Xbox Series X and S. So much for not stealing each others' thunder ;) As far as the actual hardware specs go, they are pretty on-par with each other. However, the two warring companies are approaching the growing gaming industry very differently, and competition between them will be one of the most interesting stories to watch over the coming few years. Here's a run down of where the two companies are and the very different directions that they are taking: Sony Sony is following the traditional razor and blades model that has long characterized consoles: try and not lose too much money on the consoles, and make up the difference in game licenses, its online service, and in-game purchases. It’s a model that gamers are familiar with, even if it ends up being a pricey one. In short, Sony is treating the PS5 like a console, and gamers like gamers, just as they did last generation. So, when it la...
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Why the stock market is beating expectations

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  In the early stages of the pandemic, the S&P 500 index dropped a third of its value. Since then it has roared back, soaring more than 50 percent from its low in late March and setting an all-time high last week. This seems very implausible when set against the current state of the economy and the ongoing devastation caused by the pandemic. So why is the stock market rallying in the face of a pandemic and bad economic news? Several explanations are plausible. The stock market is not the economy: The stock market represents publicly traded companies only; it’s not the whole market. Most importantly, it’s always forward looking; i.e. it’s an indicator of the future earnings of those companies and how they would fare in the future. A rising stock market indicates that investors think these companies will do better in the future. On the other hand, a falling stock indicates that investors are pessimistic about the future earnings of companies. Continued income support for the ec...
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Airtags: The ultimate brand power move

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Last week, Apple hosted its first event of the year and unveiled a slate of deliciously colorful products. But the star of the show was ... what we've been hearing rumors about for a very long time. Apple finally unveiled AirTags, little Bluetooth buttons you stick on things like wallets and keys to locate them (yep, just like Tile). They start at $29 each and will be available on April 30. AirTags use Apple's U1 chip — the same one used in iPhone 12. The chip will make AirTags trackers more accurate than those from Tile, Samsung, and Sony. Also AirTags use the "Find My" network, the same one used for Find My iPhone, Friends, etc. "Find My" is a crowdsourced network of hundreds of millions of Apple devices that can help users locate their missing tech through Bluetooth connection.  Bottom line: Apple’s powerful brand is a statement – that's currently limited to Apple devices. But with AirTags, people can slap expensive Apple labels on non-Apple products....
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