Volatility, thy name is the cryptocurrency sector. News recently emerged about Silvergate Capital (NYSE:SI) that put investors over the moon based on Thursday afternoon’s trading. Turns out Silvergate has a big new investor, and that’s put some extra credibility back in the stock as well.
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The big new investor is none other than State Street (NYSE: STT), who posted an SEC filing that went public. Based on the filing, State Street currently owns 9.32% of the crypto bank. Thanks to the new purchases, State Street almost doubled its holdings. State Street previously held just 5.3% of Silvergate Capital.
This news comes just days after BlackRock (NYSE: BLK) posted a similar SEC filing that revealed it hiked its ownership stake in Silvergate as well. BlackRock’s move took it from owning 5.9% of the bank to now owning 7.2%. The surging ownership stakes should prove helpful to not only the crypto sector, but to Silvergate as well; Silvergate is down around 80% in year-to-year comparisons thanks to an increasingly bear market for cryptocurrency.
Despite no shortage of support from investors, analysts are wary of joining in on this stock’s seeming gold rush in the making. Analyst consensus currently calls Silvergate Capital a Hold. With an average price target of $22.80, Silvergate stock has an upside potential of 8.31%
