Silvergate (SI) Stock Gains After Confirming Purchase of Meta's (FB) Diem Group Stablecoin Technology
Silvergate Capital (NYSE: SI) shares gained 8% in pre-open trading Tuesday after the company confirmed it bought the intellectual property and other technology assets of Meta Platforms' (NASDAQ: FB) Diem Group.
Silvergate’s said the deal bolsters its technical capabilities and enhances its stablecoin infrastructure initiative.
The crypto-focused financial firm said it will be paying a total of $182 million in cash and stock. $50 million will be cash and the reset in Silvergate stock.
“In the digital asset industry, money moves across the globe around the clock,” said Alan Lane, Chief Executive Officer of Silvergate. “Through conversations with our customers, we identified a need for a U.S. dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers. As previously stated on our Q4 2021 earnings call, it remains our intention to satisfy that need by launching a stablecoin in 2022, enabled by the assets we acquired today and our existing technology.”