Crypto Entrepreneur Brendan Blumer Acquires 9.3% Of Silvergate

Brendan Blumer, the founder and CEO of EOS developer Block.One, bought 9.3% of crypto bank Silvergate Capital (SI).

According to documents filed with the Securities and Exchange Commission on Wednesday, Brendan Blumer, the founder and CEO of EOS developer Block.One, bought 9.3% of crypto bank Silvergate Capital (SI), and Block.One bought an additional 7.5%.

The filings show that on November 16, Blumer bought 2,934,537 shares of the crypto bank and Block.One bought 2,363,186 shares. Based on the most recent data from FactSet, Blumer is now Silvergate’s biggest shareholder with this purchase.

Brenden Blumer and Dan Larimer started Block.one, a private blockchain company, in 2017. It is best known for making the EOS.IO protocol, which it announced in 2017 itself and then put out as free software in 2018.

Block.one said in a press release that it thought Silvergate was always coming up with new ideas and that its share price was too low.

The company writes: 

“We believe Silvergate’s current equity prices do not accurately reflect their strong balance sheet, their strategic positioning, or their market-defiant growth trajectory, and therefore offers a unique investment opportunity. We are excited to be a new passive shareholder.”

Silvergate Had Ties To FTX

On Wednesday afternoon, shares of Silvergate were up about 5% which had previously gone down sharply since the crypto exchange FTX went bankrupt. This is because people were worried that Silvergate’s ties to FTX would also affect it.

While Silvergate does indeed have at least $1 billion in FTX deposits, the bank claims that this amounts to less than 10% of its customer deposits of all digital assets. The CEO of the company has been assuring shareholders that the crypto lender will be unaffected by the market turbulence caused by FTX’s demise unlike many including BlockFi and Galaxy Digital.

Last Thursday Alan Lane at the Oppenheimer Blockchain & Digital Assets Summit assured:

“Suffice it to say, whether deposits are up or down, we have the liquidity and the capital ratios to support the volatility.”