SI: A Way To Profit From Crypto Currency Growth 从加密货币成长中获利的渠道SI

Silvergate Capital Corp (SI) dropped from nearly $188 all time high to May 12 low of around $81, a 57% decrease. It deserves a bounce due to oversold. Thanks to positive Facebook's crypto currency news and CNBC's trading Nation mentioned  a strategy of shorting Coinbase and buying SI as SI's PE is only half of that of  Coin, SI is now trading near $104. As Bitcoin and other crypto currencies going main stream and getting popular, SI's futures sure looks bright. 

Followings are what SI do: 

 1. Silvergate is a specialty bank that focuses on the digital currency industry. The bank has customers that include many of the top cryptocurrency exchange firms. Silvergate also owns the "Silvergate Exchange Network" which is a real-time money transfer system between digital currency exchanges and institutions (i.e. larger banks). (from Harrison Schwartz's article" Silvergate Capital: A Great Cryptocurrency Bank, But More Capital Raises Needed For Growth"

2. Silvergate announced on May 12 that it will become the exclusive issuer of Facebook's Diem U.S. dollar-pegged stablecoin, formerly known as Facebook's Libra project. Silvergate will also manage the reserve dollars for the Diem.

Positives for SI:

 1. Forward PE is 26 and EPS for next year is 40%, this means PEG is an very under value 0.65. For its PEG to get to fair value of 1, SI should be around 160. 

2. SI has only 20 million shares float and nearly 9% shorts, it is a potential short squeeze candidate.

3. SI bottomed at $80 on May 12 and broke above the $100 psychological resistance with above average trading volume. The momentum should be able to drive it up to challenge its 50 day moving average at around $126 near term.

News updated 05/19/2021

4. "Wedbush Securities adds Silvergate Capital (SI) to its Best Ideas List after getting a better understanding about the bank's Diem partnership from Silvergate's management.

Under the agreement, Silvergate, as the exclusive issuer of Diem stablecoins, will retain the interest income generated from investing reserve balances in Treasury securities; previously Wedbush analysts assumed SI would receive only a small management fee and the Diem Association would get the bulk of the interest income. That could lead to revenue in the "hundreds of millions" in a higher rate environment, Wedbush says.Sees the upside potential to SI's earnings as significant; as a result, Wedbush sees the stock as underpriced." ---Seeking Alpha 05/19/2021 

Silvergate （SI）从历史最高位近188美元跌至5月低点81美元左右，跌幅达57％。SI 开始了超卖反弹。由于正面的Facebook的加密货币新闻及CNBC的Tralding Nation提到了做空Coinbase并购买SI的策略，因为SI的PE仅为Coin的一半，SI现在的交易价格已升至近104美元。随着比特币和其他加密货币成为主流并日渐流行，SI的前途看起来很光明。

以下是SI的工作功能：

 1. Silvergate 资金公司（SI）是一家专注于数字货币行业的专业银行。该银行的客户包括许多顶级加密货币交换公司。 Silvergate还拥有“ Silvergate交易网络”，该网络是数字货币交易所与机构（即大型银行）之间的实时汇款系统。 （摘自Harrison Schwartz的文章“银门资本：一家伟大的加密货币银行，但需要更多的资本筹集增长资金” （" Silvergate Capital: A Great Cryptocurrency Bank, But More Capital Raises Needed For Growth"）

2. Silvergate于5月12日宣布，它将成为Facebook 美元挂钩的稳定币Diem（之前称为Facebook的Libra项目）的独家发行公司。 Silvergate还将管理Diem的储备金。

SI的好处：

 1.预期前瞻市盈率为26，明年每股收益增长为40％，这意味着PEG的估值非常低，为0.65。如果PEG达到1的公允价值，SI应该在160美元左右。

2. SI仅有2000万股流通股和近9％的空头，这是潜在的逼空候选股。

3. SI在5月12日跌至80美元的低点后开始反弹，今天并突破了100美元的心理阻力位，交易量高于平均水平。这种动能应该能够使其近期会挑战的50日移动均线126美元水平附近。

05/19/2021更新消息：

4. “在获得Silvergate管理层对银行与Diem合作关系的更好理解之后，Wedbush证券将Silvergate Capital（SI）加入了其最佳股票清单。根据协议，Silvergate作为Diem稳定币的独家发行公司，将保留投资于国债的准备金余额所产生的利息收入； 以前，Wedbush的分析师认为，SI仅会收取少量管理费，而Diem协会将获得大部分的利息收入。 Wedbush说，这可能会在较高利率的环境中导致“数以亿美元计”的收入。Wedbush认为该股票被低估了。” --- SeekingAlpha