Marc Cohodes predicts closure of Silvergate Bank

03/05/2023 01:47 • Digital Disruptors • 88 views

It is reported that Marc Cohodes, a short investor who has been short of Silvergate since last year, said that Silvergate Bank is expected to close within a week. Cohodes said, “I would be very surprised if Silvergate Bank opened next week”.

Silvergate short: Silvergate Bank is expected to close within one week

Analysis based on this information:

Marc Cohodes, a prominent short investor, has stated that the Silvergate Bank may face closure within a week. The veteran investor has been shorting the bank since the previous year and has continued to hold a negative outlook towards the institution. In Cohodes’ words, he would be surprised if the bank remains functional by next week. This prediction from a seasoned short investor is bound to raise questions around the current state and future of the Silvergate Bank.

Silvergate Bank, based in California, is a leading provider of financial services to the digital currency industry. The bank, established in 1988, has recently ventured into serving cryptocurrency firms and has seen a surge in deposits as a result. However, it is facing challenges as the industry faces regulatory challenges and a decline in cryptocurrency prices.

Cohodes’ statement, though not backed by any solid evidence, may carry weight due to his experience in predicting the probability of failure of financial institutions. His track record shows that he has successfully predicted the demise of various companies, including Home Capital Group and Valeant Pharmaceuticals, which went bankrupt later. His short selling activity targets companies with weak financials, poor management, and questionable practices. His expertise in short selling has earned him a formidable reputation in the investment industry.

Silvergate Bank has not yet given any official response to Cohodes’ comments. However, it is expected that the regulatory authorities may take notice of the matter and examine the bank’s financials and compliance measures. If the bank is found wanting, it may lead to a decline in confidence and loss of customers, which may ultimately lead to closure.

In conclusion, Cohodes has predicted that Silvergate Bank may face closure within a week. The investor’s statement has raised questions about the bank’s status and is likely to attract scrutiny. It remains to be seen whether the bank can withstand the negative publicity and whether Cohodes’ prediction turns out to be true.

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Marc Cohodes predicts closure of Silvergate Bank

Silvergate short: Silvergate Bank is expected to close within one week

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