Silvergate Capital acquires blockchain payment network assets from Diem Group for $182M

Silvergate Capital (NYSE:SI) acquired intellectual property and other technology assets related to running a blockchain payment network from the Diem Group. SI issued 1.2M class A shares to Diem and paid $50M in cash. Based on SI's closing price on Jan. 31, the aggregate value of the deal was $182M. SI expects to incur ~$30M of additional costs in 2022 as part of integrating the assets into its existing technology. The acquired assets include development, deployment and operations infrastructure, and tools for running a blockchain-based payment network. Included in the acquisition are proprietary software elements critical to running a regulatory-compliant stablecoin network. Silvergate CEO Alan Lane said the company intends to launch a stablecoin in 2022, enabled by the acquired assets and its existing technology. Last week, WSJ had reported that Diem would sell its technology to SI in an effort to return capital to its investor members.