BlocksInform
Silvergate capital corp (nyse: si) was reduced by almost half this morning after delaying the presentation of its annual report by 10k.
Something Silvergate said in her file.
The crypto bank is facing an existential crisis following the FTX fiasco in early November. On Tuesday, Silvergate Capital said in a filing with the U.S. Securities and Exchange Commission (SEC):
The Corporation is assessing its capacity to proceed as an ongoing concern [and] is re-evaluating its activities and strategies to address current business and regulatory challenges.
The lender has also confirmed that it needs to unload more assets than anticipated in the last two months, which could impact its capital ratio. The stock of Silvergate has now declined by about 65 per cent from its highest level since the beginning of the year.
The shares of Silvergate obtain several downgrades.
Also on Thursday, JPMorgan analyst Steven Alexopoulos demoted the financial services firm for "underweight" citing persistent liquidity problems.
In a tough place, Short sales seem to have contributed to some kind of bank rush, as Silvergate reported a much higher level of deposit exits than expected in the fourth quarter, and that is likely to continue.
latest reported quarter, Silvergate Capital had $1.0 billion of loss.
Coinbase also announced today that it had stopped payments to or from the crypto bank. Canaccord Genuity analysts also downgraded Silvergate shares on Thursday and reduced their price objective by $9.0 per share.
