Silvergate Capital jumped on Tuesday afternoon after BlackRock reported a 7% stake in the crypto bank. 

Shares of Silvergate rose 9.96% after a Jan. 31 filing with the Securities and Exchange Commission became public. BlackRock increased its holding in Silvergate to 7.2%, an increase from the 5.9% it previously reported, according to the filing. 

More than 70% of Silvergate Capital shares that are freely available to trade are sold short, according to FactSet data.

While cryptocurrencies and related stocks have enjoyed a strong January rally this year, Silvergate has been struggling in the aftermath of the FTX blowup. Shares of the bank slid sharply November, when the crypto exchange FTX, a Silvergate customer, collapsed in scandal.

Silvergate shares are now down about 20% in 2023. They are off by about 87% over the past year.

Earlier this month, shares of Silvergate tanked more than 40% after the bank reported massive withdrawals in the fourth quarter in light of the FTX collapse. Despite the rise in cryptocurrencies and stocks this month, investor confidence is still shaken.

BlackRock, the largest asset manager in the world, has maintained a positive stance toward crypto and blockchain technology. In addition to being an investor in FTX, late last summer the firm launched a private trust to give clients exposure to spot bitcoin.