Silvergate Cuts 40% Jobs, Writes Off Diem Asset Acquisition
TL;DR Silvergate Capital, a crypto-focussed bank, has laid off 40% of its staff (200 employees) and written off the $196 million it spent to buy Diem Association from Meta. Silvergate's shares have dropped 23% in pre-market trading.
Silvergate Capital (SI), the crypto-focussed bank, has cut 40% of its total staff or about 200 employees, the firm said on Thursday.
The bank has also halted its plans to launch a digital currency and has written off the $196 million it spent to buy the technology and assets of Diem Association from Meta (FB).
Diem had said in February last year that Silvergate would be buying its assets and technology.
Shares of Silvergate were down 23% at $16.9 in pre-market trading.