Key Takeaways
- • Soros Fund Management held put options on 100,000 shares of Silvergate Capital Corp. with a market value of $1.74 million as of Dec. 31, according to a regulatory filing.
- • The put position would profit if Silvergate shares fall below a strike level that was not disclosed, and the filing gave no expiration date.
- • The bet comes as Silvergate faces increasing public scrutiny over its ties to Sam Bankman-Fried's bankrupt FTX empire and the broader crypto industry.
- • Other 13F disclosures in the same period showed Citadel Securities reporting a 5.5% stake in Silvergate, including options positions.
Summary
Billionaire George Soros's family office, Soros Fund Management, disclosed a bet against Silvergate Capital Corp., the crypto-focused bank under growing public scrutiny over its ties to Sam Bankman-Fried's bankrupt business empire and the wider cryptocurrency industry. According to a regulatory filing, the firm held put options on 100,000 shares of Silvergate with a market value of $1.74 million as of Dec. 31.
Put options give the holder the right to sell shares at a set price, so the position would generate a profit if Silvergate's stock declined below a level the filing did not disclose. The filing also gave no expiration date for the options, leaving the duration of the position unclear from the disclosure alone.
The disclosure drew attention because Silvergate was being probed over its relationship with FTX, the exchange operated by Bankman-Fried that collapsed into bankruptcy. Bloomberg reported that investors more broadly had been using put options to bet against the bank, and separate 13F filings showed Citadel Securities reporting a 5.5% stake in Silvergate, including options positions.
The filing offers a snapshot of institutional positioning in a bank whose exposure to crypto clients had become a central concern for investors. The position is a disclosed options bet rather than a short sale of common stock, and the filing itself does not indicate the fund's rationale.
Put options give the holder the right to sell shares at a set price, so the position would generate a profit if Silvergate's stock declined below a level the filing did not disclose. The filing also gave no expiration date for the options, leaving the duration of the position unclear from the disclosure alone.
The disclosure drew attention because Silvergate was being probed over its relationship with FTX, the exchange operated by Bankman-Fried that collapsed into bankruptcy. Bloomberg reported that investors more broadly had been using put options to bet against the bank, and separate 13F filings showed Citadel Securities reporting a 5.5% stake in Silvergate, including options positions.
The filing offers a snapshot of institutional positioning in a bank whose exposure to crypto clients had become a central concern for investors. The position is a disclosed options bet rather than a short sale of common stock, and the filing itself does not indicate the fund's rationale.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.