Silvergate Contrarian Bet Soured for Peter Thiel-Backed Block.one, Bill Miller
- Miller Value Partners, Block.one built late stakes in bank
- Silvergate’s crypto ties force wind-down, liquidation plans
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Just months before Silvergate Capital Corp. announced that it was winding down, banking’s first casualty from the crypto industry’s implosion, a company called Block.one was boosting its investment.
Silvergate’s stock was plummeting, depositors were fleeing and the short-sellers were circling — but Block.one and its chief executive officer, Brendan Blumer, were big buyers. In November, they purchased stock amounting to a 9.27% stake in the lender, according to a statement late that month. By the end of December, the firm, whose long-time backers include Peter Thiel and Alan Howard, had boosted that position so that Block.one, together with Blumer, became Silvergate’s biggest holder with a combined 9.9% holding.