• Block.one, a Peter Thiel-backed blockchain software company, has exited its equity position in Silvergate Bank due to the bank’s inability to file its annual report last week.
• The company made a contrarian bet on Silvergate in November when its exposure to FTX’s collapse became public.
• Opimas LLC CEO Octavio Marenzi said that macroeconomic conditions are having a bigger effect on crypto markets more generally.
Block.One Exits Silvergate Stake
Peter-Thiel backed blockchain software company Block.one announced it had exited its equity position in Silvergate Bank after the bank was unable to file its annual report last week.
Bet On Silvergate In November
In November, when the bank’s exposure to FTX’s collapse first became known, Block.one made a contrarian bet on Silvergate citing their “strong balance sheet, their strategic positioning, or their market-defiant growth trajectory” which made the bank a “unique investment opportunity.”
Macroeconomic Impact On Crypto Markets
Opimas LLC CEO and founder Octavio Marenzi discussed the crypto market impact of the Silvergate Bank turmoil saying, “the markets reacted with a big yawn.” He adds that the macroeconomic backdrop, with U.S. Federal Reserve Chair Jerome Powell saying interest rate hikes are not finished, “is definitely having a bigger effect on crypto markets more generally.”
Bullish Has No Exposure To Silvergate
Block.one also said its portfolio company Bullish has no exposure to Silvergate whose holding company announced Wednesday the bank would “voluntarily liquidate” its assets and wind down operations.
Conclusion
The exit of Block.one from their equity position in Silvergate illustrates how macroeconomic conditions can have an impact on crypto markets as well as how investors need to be aware of potential exposures within investments before investing into them and assess any associated risks appropriately before making such investments in future.