Digital Currency Group Invests In Bitcoin-Friendly Silvergate BankFebruary 27, 2018 4:18 pm
Silvergate Capital Corporation, the holding company of the bitcoin startup-friendly Silvergate Bank, has a new investor after cryptocurrency venture capital firm Digital Currency Group (DCG) confirmed Tuesday it had made an investment, CoinDesk reported.
In its announcement, Silvergate said it sold 9.5 million shares through a private placement generating $114 million in total – funds slated to further support the bank’s fintech deposit initiatives, the report said.
In the announcement, CoinDesk reported, in which no investors were disclosed, DCG confirmed the firm’s participation in the sale via email to CoinDesk after the official announcement.
While the specific amount of investment remains unknown, the move by DCG is notable given Silvergate’s known stance in supporting cryptocurrency startups, the report said.
Beginning in 2014, the cryptocurrency industry encountered difficulties receiving banking services from traditional financial institutions, with many banks refusing to open accounts for crypto firms, or abruptly closing accounts without explanation, CoinDesk reported.
Silvergate Bank, however, was the exception – offered bank accounts to bitcoin startups, even while others shied away from bitcoin-related clients due to risk concerns.
– WN.com, Jack Durschlag