Shares of Silvergate Capital (NYSE:SI) are in freefall this week, whereas the U.S. Securities and Trade Fee, or SEC, has revealed a big liquidation of firm inventory by board member Thomas Dircks. 

The safety regulator’s Type 4 documentation shows Dircks offered 60,000 Class A Frequent Inventory over eight transactions on Dec. 8. The most important transaction was the disposal of 37,192 shares at a worth of $40.72.

In whole, the gross sales netted Dircks over $2.4 million.

Dircks is listed as a member of the board for Silvergate Financial institution, which supplies lending and deposit providers for “modern companies in fintech and cryptocurrency.” He’s additionally a managing director to Charterhouse Strategic Companions, which invests in quite a few ventures from cryptocurrency to healthcare and as much as wi-fi infrastructure.

Dircks, who’s listed as a ten% proprietor in Silvergate by way of Constitution Digital and a “household basis,” seems to have initiated the sale shortly after SI reached new all-time highs earlier within the week.  

Silvergate closed at $44.53 on Monday, the eve of the dump, which was a brand new all-time excessive. It has since declined 16.4% over two buying and selling days, together with an 8.9% fall on Wednesday the place it closed at $37.21. Yr-to-date, SI has greater than doubled. At its peak, it was up almost thrice for the reason that begin of 2020. 

SI inventory’s year-to-date efficiency by Yahoo Finance

The sale triggered heavy volatility in SI inventory on Wednesday, with commerce volumes greater than thrice greater than regular. 

As Cointelegraph stories, Silvergate went public in Nov 2019 following a profitable IPO. On the time, the corporate boasted of greater than 750 cryptocurrency clients.