Nov 23, 2022 - Economy & Business

Block.One, founder buy a large stake in Silvergate

Illustration of a golden shopping cart

Illustration: Annelise Capossela/Axios

Brendan Blumer, the founder of Block.One, has disclosed a 9.3% stake in Silvergate Capital, according to a new filing with the Securities and Exchange Commission.

Why it matters: Silvergate, the parent company of Silvergate Bank, is one of the largest providers of financial services in the blockchain industry.

  • The combined stake appears to put Block.One ahead of Vanguard as the largest shareholder.

Details: Block.One in the beneficial owner of 2.36 million shares, or a 7.5% stake, while Blumer himself has ownership of the remaining 571,351 shares in the stake.

Flashback: Block.One facilitated what was thought to have been the largest initial coin offering of the 2017-18 era, for EOS, and the firm has been one of the largest bitcoin holders in the world.

  • Block.One subsequently created a subsidiary exchange called Bullish.

Of note: Blumer and Block.One filed the disclosure as a passive investor, consistent for a shareholder that has no activist intentions.

What they're saying: ""We appreciate their investment in Silvergate. Beyond that, as a matter of company policy, we do not comment on specific interactions with current or potential investors," a spokesperson from Edelman Smithfield told Axios on behalf of Silvergate.

Block.one was not immediately available for comment.

Editor's note: This is a developing story. Please check back for updates.

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