Brendan Blumer (Wikimedia)
Brendan Blumer, known as one of the creators of the EOS blockchain and one of the richest people in the crypto space, has bought a 9,3% stake in crypto bank Silvergate Capital, a new SEC filing has revealed.
The large stake acquired by Blumer means that the Hong Kong-based crypto entrepreneur is now the largest shareholder in Silvergate.
The purchase of Blumer's stake comes on top of a 7,5% stake acquired by Block.one, the EOS development company that Blumer runs.
Together, Blumer and his company now control nearly 17% of Silvergate Capital.
A “unique investment opportunity”
In a press release sent out by Block.one, Silvergate was described as a company with "a proven track record of maintaining a conservative and liquid balance sheet investment portfolio."
Block.one added that it sees Silvergate as a currently undervalued investment opportunity.
“We believe Silvergate's current share prices do not accurately reflect its strong balance sheet, strategic positioning or market-challenging growth trajectory and therefore offer a unique investment opportunity. We are excited to be a new passive shareholder,” the crypto company wrote.
FTX exposure continues to weigh on Silvergate
Shares of Silvergate have suffered since the FTX collapse as the market worried about the bank's exposure to the now bankrupt cryptocurrency exchange. Since the beginning of November, the share price is down about 52%, even though it rose more than 11% yesterday on the news that Blumer became the largest shareholder.