Silvergate Capital in La Jolla, Calif., is preserving capital by suspending dividends on a series of preferred stock.
The $11.4 billion-asset company said in a press release that dividends were paused on its 5.375% fixed-rate non-cumulative perpetual preferred stock
“This decision reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry,” the release said.
Silvergate said it continues to maintain a cash position in excess of its digital asset customer related deposits.
The board will re-evaluate the payment of quarterly dividends as market conditions evolve.
Silvergate, which has been navigating hits to the digital asset industry, sold securities at a loss and borrowed from the Federal Home Loan Bank system in the fourth quarter to offset losing more than half of its deposits over that period.