Crypto-friendly Silvergate Bank has clinched the title of most shorted stock on Wall Street—a strong indication that traders think the beleaguered bank’s stock price will continue to go down.
Of all the shares in Silvergate that are available for investors to buy and sell, 73.5% of them are being sold short, according to data from MarketWatch. The next most shorted stocks are Carvana (60.6%), followed by Applied UV (50.3) and Bed Bath & Beyond (48%).
When an investor sells a stock short, they borrow shares in a company and then immediately sell them, expecting to buy the stock for a cheaper price in the future and pocketing the difference.
Silvergate’s stock price was down around 11% Tuesday to $16.08, as of this writing. The figure represented a 92% decline from its all-time high of $222.13 in November 2021, when the digital assets industry was booming and the price of Bitcoin was around $63,000.
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