Crypto friendly lender Silvergate Bank announced its third-quarter earnings report today, claiming that the number of its clients has gone up to 928. The bank earned $7.1 million translating to $0.37 per share.
Net income rising for Silvergate
According to the latest report, the firm’s net income rose by 29% in this quarter. It was $5.5 million or $0.29 in the second quarter of the year. This also led to a significant year-on-year rise for the firm as Q3 2019 net income was $6.7 million. The bank, based in California, suggested that during the three months ending September 2020, its crypto client figure grew to 928. The figure was 881 at the end of June 2020 and 756 in Q3 2019.
It added 47 new ‘Digital Currency customers’ during the third quarter which led to a $3.3 million rise in fees earned from clients. The figure was $2.4 million in the second quarter of 2020. On a yearly basis, it was able to double its crypto fees from $1.6 million earned in Q3 2019.
It also witnessed an increase in the number of transactions on the Silvergate Exchange Network (SEN). In the previous quarter, it recorded 40,286 transactions which grew by 70% to reach 68,361 transactions in the third quarter. In terms of yearly growth, the figure is 4x higher than the 12,312 transactions recorded in the third quarter of 2019.
SEN handled more value and transactions
Alan Lane, president, and CEO of Silvergate commented on the exciting results from the firm and said,
“We also achieved an important milestone at the conclusion of the quarter as the SEN has handled $100 billion in transfer volumes just three years after its creation and introduction to the digital currency industry, which clearly demonstrates its value and importance to the digital currency ecosystem.”
Higher trading volumes for Bitcoin helped push the growth of total volumes by 64% on the platform. The SEN handled transactions worth $36.7 billion in the third quarter. During the second quarter, its transaction value was $22.4 billion. In Q3 2019, the value of these transactions was $10.4 billion.