Crypto bank Silvergate Capital lands Overweight rating from Wells Fargo on rising rates

Wells Fargo analyst Jared Shaw has started coverage on cryptocurrency lender Silvergate Capital (NYSE:SI) with an Overweight rating on the basis of rising interest rates, as well as prospects for further growth in its exchange network. Shaw's upbeat call comes despite crypto winter taking hold, exacerbated by crypto lending platform Celsius' pause on all withdrawals due to "extreme market conditions." More recently, crypto exchange Binance said it halted bitcoin (BTC-USD) withdrawals "due to a stuck transaction causing a backlog." Shares of Silvergate (SI) -17% alongside a raft of crypto-focused stocks are cratering in Monday premarket trading. Nevertheless, "as rates rise, higher spread income will come from a zero-cost deposit base, and further growth in SEN Leverage and the rollout of an SI-issued stablecoin payments network represent future opportunities," Shaw wrote in a note. The analyst pointed to Silvergate's (SI) digital customer growth, "the biggest driver of deposits" at the crypto bank, with its