Why Bitcoin- And Ethereum-Related Stock Silvergate Capital Is Skyrocketing

Silvergate Capital Corp SI shares are trading higher by 14.46% to $91.11 Wednesday afternoon after Wells Fargo maintained an Overweight rating on the stock and raised its price target from $100 to $115. 

Silvergate Capital shares were also trading higher Tuesday after the company reported better-than-expected second-quarter EPS and sales results.

See Also: If You Invested $100 In Bitcoin, Ethereum And Dogecoin 5 Years Ago, Here's How Much You'd Have Now

What Happened?

Silvergate Capital reported quarterly earnings of $1.13 per share which beat the analyst consensus estimate of 84 cents. The company reported quarterly sales of $79.76 million which beat the analyst consensus estimate of $73.52 million by 8.5%. This sales figure represents an 88% increase over sales of $42.45 million the same period last year.

The company says digital currency customers grew to 1,585 at June 30, 2022, compared to 1,503 at March 31, 2022, and 1,224 at June 30, 2021.

Why it Matters

Alan Lane, president and chief executive officer of Silvergate, commented, "Silvergate had another strong quarter in light of the challenging backdrop facing the broader digital currency ecosystem. I am proud of our results as we achieved record net income available to common shareholders of $35.9 million and saw some of the highest daily dollar transfer volumes ever on the Silvergate Exchange Network (SEN).

"In addition, we saw continued demand for our SEN Leverage product, with no losses or forced liquidations," Lane added.

According to data from Benzinga Pro, Silvergate Capital has a 52-week high of $239.26 and a 52-week low of $50.65.