Citadel Securities, the market maker that is owned by Citadel's Ken Griffin, on Tuesday reported a 5.5% stake in cryptocurrency-focused lender Silvergate Capital Corp. worth about $25 million, according to a regulatory filing.
Shares in Silvergate jumped after the disclosure, and were last up about 14%.
The filing was a result of the firm's market making operations as opposed to a directional investment in Silvergate, according to a person familiar with the matter.
Silvergate has been seeking to ease investor concerns over its future, after reporting a $1 billion loss for the fourth quarter because crypto exchange FTX's bankruptcy shook confidence in the digital asset sector.
Federal prosecutors in Washington are probing Silvergate and its dealings with FTX and Alameda Research, a source familiar with the investigation has said.
U.S. custodian bank State Street Corp. reported a 9.32% passive stake in Silvergate earlier this month.
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