Bitcoin-Friendly Silvergate Bank Receives Investment From Digital Currency Groupbr>
Silvergate said it sold 9.5 million shares that raised a sum of $114 million during the common stock sale. Proceeds from this placement will support further growth in the bank’s nationwide FinTech deposit initiative and its business banking and residential lending activities.
Although Silvergate did not name the names of investors, DCG founder Barry Silbert confirmed the firm’s participation in the round of financing. The amount allocated by DCG is also not specified.
Silvergate Bank was known for providing banking services to cryptocurrency startups when other banks refused to work with those types of companies. According to the company, the bank has a relationship with fifteen cryptocurrency-focused businesses, and in April of last year, the bank collaborated with blockchain surveillance company Elliptic.
“Our recent private placement is a major milestone in the history of Silvergate, increasing our equity capital by over 120%,” said Dennis Frank, Silvergate’s chairman. “The strong reception for this placement is a testament to our employees’ sustained efforts in pursuing our strategies and the prospects that we believe lie before us.”
Based in New York, DCG is a venture capital company focusing on the digital currency market. It was launched in 2015 by Barry Silbert, who previously founded SecondMarket. Silbert began investing in bitcoin companies in 2013, first as an angel investor, and provided funding for many of the earliest companies including Coinbase, BitPay, and Ripple. DCG’s 114 investments cover companies like Ledger Wallet, Bitgo, Bitpay, Blockstack, and more.
“We are thrilled to welcome Silvergate Bank to the DCG family of companies,” DCG said in a Twitter post.