Silvergate Capital, a California-based bank that mainly deals in cryptocurrency, informed U.S. Securities and Exchange Commission (SEC) earlier this week that it will most likely fail to deliver its annual report by the already-extended March 16 deadline. Silvergate also expressed concerns about the ability to continue its business.
The SEC filing caused panic among investors and brought the Silvergate stock down more than 50% on Thursday. The company’s shares have already lost around 95% of their value in the past year.
Silvergate said that it needs more time to complete certain procedures related to Form 10-K filing while noting its weakened capital position.
“The Company is currently in the process of re-evaluating its businesses and strategies in light of the business and regulatory challenges it currently faces, “the bank shared.
The start of 2023 has been rough for Silvergate as the demise of several crypto companies, most notably crypto exchange FTX, directly impacted the bank’s ability to do business. This was followed by an investigation by the Department of Justice into Silvergate’s dealings, making its challenging position even more difficult.
Besides having its stock crash, Silvergate also saw several of its high-profile clients from the crypto business distance themselves from the bank. This included crypto exchange Coinbase, which stopped “accepting or initiating payments to or from Silvergate.”