{"id":74931,"date":"2023-03-02T19:38:24","date_gmt":"2023-03-02T17:38:24","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74931"},"modified":"2025-09-10T02:31:13","modified_gmt":"2025-09-09T23:31:13","slug":"silvergate-shares-plunge-49-after-delay-in-sec-filing","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/silvergate-shares-plunge-49-after-delay-in-sec-filing\/","title":{"rendered":"Silvergate shares plunge 49% after delay in SEC filing"},"content":{"rendered":"

On March 2, Silvergate Capital Corporation\u2019s market capitalization collapsed by 48.82% amid news of a delay in publishing its annual report for the the delay in publication<\/a> of the annual report for the SEC<\/span>. The company said it would take \u201cadditional time\u201d to complete the audit.<\/p>\n

The company also cited \u201ca number of circumstances\u201d that affected its ability to file the documentation on time. Specifically, it noted sales of investment securities \u201cbeyond what was previously expected and disclosed in the company\u2019s earnings report.\u201d Another factor was new bond issuances in January and February 2023. Silvergate said it intends to record losses on them.<\/p>\n

Write\u2011downs on securities could negatively affect the capital adequacy of both Silvergate Bank and its parent, Silvergate Capital Corporation.<\/p>\n

The filing notes that the organization \u201cis currently reviewing certain regulatory and other requests, as well as investigations concerning its operations.\u201d<\/p>\n

The bank\u2019s management is \u201cin the process of reassessing its business and strategies in light of the challenges it has faced.\u201d<\/p>\n

On March 2 it also emerged that Coinbase dropped Silvergate for Prime customers<\/a>. The exchange had been cooperating with the bank in the context of servicing Prime customers.<\/p>\n

\"image-1-10\"
Intraday chart of Silvergate Capital Corporation shares. Source: Finviz<\/a>.<\/figcaption><\/figure>\n

Over the last six months, Silvergate Capital Corporation\u2019s shares have fallen by 92.1%.<\/p>\n

For the quarter ended December 31, 2022, the loss of the digital-asset-focused institution amounted to $1.05 billion<\/a>.<\/p>\n

The deterioration of the operating environment was driven by the collapse of FTX, which had been a client of the bank<\/a>.<\/p>\n

The company also faced funding access issues as it sought to reduce its reliance on the Federal Home Loan Banks.<\/p>\n

In the latest reporting period the bank recorded a deposit outflow and took a series of steps to maintain liquidity. The company initially tapped wholesale funding, then sold debt securities.<\/p>\n

Moody\u2019s downgraded the rating<\/a> of Silvergate Bank from Ba3 to B2, citing deterioration in its baseline credit assessment of the financial institution.<\/p>\n

In November, Silvergate said that on the trading platform less than 10% of its deposits<\/a> were held. The bank also disclosed the volume of client deposits on accounts undergoing bankruptcy proceedings of the BlockFi platform \u2014 they did not exceed $20 million<\/a>.<\/p>\n

In February 2023, Bloomberg reported that the U.S. Department of Justice\u2019s Fraud Section is investigating Silvergate\u2019s deals with the FTX platform and the associated Alameda Research hedge fund.<\/p>\n

The company is listed in the list of creditors<\/a> of the bankrupt Bitcoin exchange.<\/p>\n

Earlier, Senators Elizabeth Warren, John Kennedy and Roger Marshall asked Silvergate CEO Alan Lane to provide detailed information about the bank\u2019s ties to FTX.<\/p>\n

In late 2022, Silvergate was sued in a class-action lawsuit<\/a> over its alleged role in transferring user deposits from FTX to Alameda Research.<\/p>\n

In January 2023, U.S. federal prosecutors seized more than $6 million held on three accounts at Silvergate, opened in the name of the Bahamian subsidiary of the exchange FTX Digital Markets.<\/p>\n

Recently, Binance transferred over $400 million<\/a> from accounts opened by its U.S. subsidiary with the crypto firm Merit Peak, founded by Binance CEO Changpeng Zhao.<\/p>\n

Refrain from using Silvergate\u2019s services<\/a> for its clients was also urged by the LedgerX platform management.<\/p>\n","protected":false},"excerpt":{"rendered":"

On March 2, Silvergate Capital Corporation’s market capitalization fell by 48.82% amid news of a delay in publishing its annual report for the SEC. The company said additional time was needed to complete the audit.<\/p>\n","protected":false},"author":1,"featured_media":74932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[128,1683],"class_list":["post-74931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-sec","tag-silvergate-bank"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74931"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74931\/revisions"}],"predecessor-version":[{"id":74933,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74931\/revisions\/74933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74932"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}