Ken Griffin Is Making a Big Bet on Silvergate (SI) Stock


Editor’s Note: This article was updated to clarify that Citadel Securities does not have a directional investment in Silvergate Capital.

  • Shares of Silvergate Capital (SI) are surging today.
  • Ken Griffin’s Citadel Securities reportedly took a 5.5% stake in the embattled crypto bank.
  • This vote of confidence has clearly inspired sympathy buying pressure during today’s session.
SI stock - Ken Griffin Is Making a Big Bet on Silvergate (SI) Stock

Source: T. Schneider /

One of today’s big movers is none other than crypto bank Silvergate Capital (NYSE:SI). Shares of SI stock have skyrocketed in today’s session, surging around 15% in early afternoon trading. This move comes following news that Ken Griffin’s Citadel Securities has taken a rather large stake in Silvergate.

A 13-G filing outlined a 5.5% stake in Silvergate taken by Citadel. The filing is a result of the firm’s market making activity and does not indicate a directional investment. However, this move, which amounted to around $25 million, provides Citadel with significant exposure to one of the few fiat-to-crypto lending institutions left.

Accordingly, given how far SI stock has fallen thus far this year, it’s clear speculators and retail investors are looking at this big buy as a signal that now’s a good time to jump in. Additional buying activity from State Street (NYSE:STT), which took a 9.3% stake as of the end of last year, and Blackrock (NYSE:BLK), another institutional investor with a 7.2% stake, suggests institutional capital isn’t done flowing into the crypto sector.

Let’s dive into what investors may want to make of this move.

Is SI Stock Finally a Buy?

When so many institutional investors pile into a trade at once, investors have to become a little curious. Indeed, there’s a ton of brainpower behind these individual firms. And the fact that each of them concluded that Silvergate was a buy suggests there may be something here.

Indeed, if crypto is the disruptive technology many believe it will become over the long term, buying on dips seems like a smart move. The dip in SI stock has been much more vicious than that of the entire crypto sector. Accordingly, perhaps this stock is no longer a guarded secret in the world of money managers.

It appears the word is out that Silvergate is an attractive play in an otherwise opaque crypto sector. Despite significant deposit outflows, Silvergate has remained over-collateralized with its lending. And, it appears to be in a relatively decent position compared to other peers in this space.

On the date of publication, Chris MacDonald did not have (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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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