Silvergate Capital (NYSE:SI) shares climb 5.4% in premarket trading after J.P. Morgan analyst Steven Alexopoulos initiates coverage of the crypto bank at Overweight as its positioned to ride the cryptocurrency adoption wave with multiple revenue levers. Sets $300 price target, implying 59% upside potential from Wednesday's close. He points out that the crypto bank serves the highest number of crypto customers in the U.S., thanks to its Silvergate Exchange Network, a real-time payment network that allows crypto exchanges and institutional investors to transact 24/7. With 1,300+ digital currency customers on SEN, deposits from those customers have grown almost 7 times since 2017 to $11B+. "Silvergate’s (SI) status as the pure-play bank of the crypto ecosystem, has led to the creation of a bank not only with superior growth potential, but also that operates with one of the highest quality balance sheets in the industry, Alexopoulos writes in a note to clients.
