- Silvergate Capital delayed the submission of its 10-K annual report.
- JPMorgan today downgraded Silvergate stock as underweight.
- Silvergate Capital is currently down 65% to its year-to date high.
Silvergate Capital Corp (NYSE – SI) was nearly cut in half today after it delayed submitting its annual 10-K Report.
What Silvergate claimed in its SEC filing
After the events of September 11, 2018, the crypto bank is in an existential crisis. FTX fiasco In early November. Silvergate Capital stated in a Tuesday statement that it had received a filing The U.S. Securities and Exchange Commission, (SEC),:
The Company is currently evaluating whether it can continue to be a going concern. [and] It is currently evaluating its strategies and businesses in light of current regulatory and business challenges.
It was also revealed that the lender had to sell more assets than it expected in the past two months. This could impact its capital ratio. Silvergate stock is down around 65% to its highest point for the year.
Silvergate stock gets multiple downgrades
Also on Thursday, JPMorgan analyst Steven Alexopoulos downgraded the financial services company to “underweight” citing continued liquidity challenges.
With the environment being difficult, short-sellers seem to have contributed to a bank run of sorts. Silvergate reported that there was a greater amount of deposits outflows in Q4 than they anticipated and that this is likely to continue.
Its latest reported quarterSilvergate Capital suffered a loss of $1.0 billion.
Coinbase is also available announced Today, the bank announced that it had stopped paying crypto bank payments. Canaccord Genuity analysts also downgraded Silvergate stock and reduced their price target to $9.0 per share.