Silvergate Capital Corp said on Friday it had suspended dividend payouts on some of its preferred stock as the cryptocurrency-focused bank seeks to preserve capital.
The moves comes days after the La Jolla, California-based company slashed its headcount by 40%, seeking to cut costs as the crypto downturn worsens.
Investors, wary of wading far into digital asset space after the collapse of major exchange FTX in November, pulled out more than $8 billion in deposits held at the bank in the last three months of 2022, Silvergate said earlier this month.
The company, however, said it had cash in excess of deposits.