A noticeable drop in Silvergate shares occurred early on Thursday morning due to a crisis of confidence in the company and a lot of regulatory problems that arose after the bankruptcy of the FTX crypto exchange in November last year.
On the eve of Wednesday, it became known that a bank from California will need more than 2 weeks to file an annual report with the SEC. The company’s representatives noted that the impact of recent events may raise a number of questions about the bank’s ability to continue its activities. After the announcement of the postponement of the filing of the annual report, Silvergate shares declined in price and were sold at $7.38.
Wall Street reacted to this news by quickly downgrading Silvergate Bank’s rating. Due to the current situation, the Coinbase crypto exchange has transferred the service of Prime account holders to Signature Bank and no longer uses Silvergate to make dollar payments.
Recall that at the end of 2022, Silvergate Bank announced losses of $ 1.05 billion.