Why Shares of Silvergate Capital Are Rising

Silvergate Stock Price Could Rise 50%

Bank of America analyst Brandon Berman initiated a buy rating of Silvergate Capital and a $200 price target, implying about 45% upside from its current levels.

Silvergate Capital has built a real-time payments system that better facilitates cryptocurrency trading because parties on the network can send and clear transactions instantly at any time, whereas most of the U.S. payments system doesn’t operate in real time. Cryptocurrencies trade around the clock. Silvergate also earlier this year acquired the assets behind Meta Platform’s Diem and U.S. dollar stablecoin and is planning to eventually roll out a stablecoin later this year.

Berman likes Silvergate for several reasons. For one, he said the company “is one of the best-positioned companies to benefit from the expanding use of stablecoin for payment, commerce, and remittance.” He also thinks that Silvergate as a regulated bank is better positioned to operate in the uncertain regulatory environment. Finally, Berman believes Silvergate can grow its balance sheet much, much faster than atraditional bank.