Crypto bank $SI fell >40% yesterday after issuing a Q4 status update.
We have curated 9 highlights from the conference call, covering topics like mass-withdrawals, a 40% staff reduction, and the state of the crypto market ๐งต
1. Crypto firms are moving into U.S. treasuries (๐):
We have curated 9 highlights from the conference call, covering topics like mass-withdrawals, a 40% staff reduction, and the state of the crypto market ๐งต
1. Crypto firms are moving into U.S. treasuries (๐):
"Now everybody probably understands why we don't provide guidance"
2. Institutional money is pouring out of the crypto market:
2. Institutional money is pouring out of the crypto market:
3. The crypto market is "significantly" over-leveraged, according to Alan:
"Can we actually essentially validate the carrying value of the asset - well, how do you do that?"
4. Here it sounds like Alan admits to the impossibility of valuing crypto assets (?):
4. Here it sounds like Alan admits to the impossibility of valuing crypto assets (?):
"..customers that have filed for bankruptcy"
5. $SI has been forced to sell assets at a loss to mitigate mass-withdrawals from customers:
5. $SI has been forced to sell assets at a loss to mitigate mass-withdrawals from customers:
6. $SI prepares for a sustained period of lower deposit levels:
7. $SI is cutting its workforce by 40%:
8. $SI is scratching future product releases + taking an impairment charge related to the Diem project which they acquired from $META:
You should probably avoid words like "wildcard" in this situation...?
9. $SI is back to where it was two years ago (kind of at the beginning of the crypto/NFT craze judging by the BTC/USD chart):
9. $SI is back to where it was two years ago (kind of at the beginning of the crypto/NFT craze judging by the BTC/USD chart):
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