Is Silvergate (SI) Stock a Buy Right Now? Bank of America Says ‘Yes.’

Silvergate (NYSE:SI) stock is up today on good news from Bank of America (NYSE:BAC). It seems that Bank of America is recognizing the emerging trend of institutional investing at the financial services company. And, this recognition is bringing about a big co-sign. Silvergate continues to pave its way as an institutional tour de force for crypto investing; now, stock aficionados are placing their bets on SI stock as a clear-cut choice for traditional exposure to a burgeoning industry.

An image of several crypto coins in a circle around a geodesic sphere.
Source: lucadp /

Although it is known as a crypto-banking firm, Silvergate has plenty of skin in the game. The company began in the 1980s as a business loan outfit. While it continues these services, it really began to attract investor attention thanks to its 2013 pivot into crypto banking. Since then, Silvergate has become a go-to for crypto financial services, helped largely by its status as a Federal Reserve member bank.

The bank’s reputability comes as it serves some of the largest crypto exchanges in the world, such as Coinbase (NASDAQ:COIN), FTX and Kraken. Through the Silvergate Exchange Network, the company provides these exchanges with real-time USD and EUR price settlement, allowing for the most accurate trades possible.

In recent months, Silvergate has been making moves which suggest much broader expansion of its crypto services. Most notably, it acquired the intellectual property of Meta Platforms’ (NASDAQ:FBDiem stablecoin project, which it abandoned during the height of last year’s Congressional probes into the company. For Meta, the sale represents a failed opportunity. But for Silvergate, the purchase suggests a huge growth opportunity for its promised “next-generation global payments system.”

SI Stock Gains on News of a Bank of America Co-Sign

SI stock has built up its fair share of steam in the last year and a half. The company has been able to easily capitalize on the rapid boom in crypto interest. Today, though, SI stock is getting some help from fellow banking institution Bank of America; the financial service giant says Silvergate is one of the best crypto stock investments around.

Bank of America set the tone for Silvergate’s next few months via a report on the company it published this week. In the report, the bank compliments Silvergate as a viable and lucrative alternative way to gain crypto exposure without having to own any crypto assets themselves. It further comments on the company’s “tremendous client growth” and “first mover advantage.” These factors are fueling the firm’s new “buy” rating for Silvergate and SI stock.

Much of the report overlooked the company’s previous successes. But, the banking giant honed in on Silvergate’s Diem acquisition as a catalyst for further growth. Thanks to the purchase and its role in coming expansion, Bank of America theorizes a 50% upside for share prices; as such, Silvergate is being slapped with a $200 price target.

The report is doing very well to bolster SI stock this morning. So far, the stock is seeing a gain of about 4.5%, bringing share prices above $146.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

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