BlackRock came to the rescue of Silvergate, which was in great difficulty after the bankruptcy of FTX and BlockFi and had to sell many assets to meet the cash outflows of its customers and announced a loss of $ 1 billion in its last quarter report.
Shares rose 10%
The company, which manages more than $13 trillion in assets, announced in a statement to the SEC that it has increased its stake in Silvergate to 7.2%. This figure was 5.9% last. This support of BlackRock also gave confidence to Silvergate investors and the company’s shares rose 10% yesterday. Prior to the BlackRock investment, stocks had fallen sharply. Silvergate shares were down 20% even in January when many assets rallied. The rate of decline in 2022 was 87%.
The bank, which parted ways with some of its employees due to the crisis it experienced last week, was recently accused of tax evasion by a bipartisan group of US senators. Three senators, including Elizabeth Warren, wrote to the bank asking if they were aware of FTX’s misuse of client funds. The company has to respond to the letter by February 13.
On the other hand, BlackRock also announced that it has increased its shares in the technology company Baidu, also known as “China’s Google”.
