Silvergate Stock Tumbles 45% After 'Going Concern' Filing
Crypto-friendly lender Silvergate Capital (SI) plunged 45% in early on Thursday on questions about its survival due to losses and numerous regulatory issues that have arisen following last November's FTX collapse.
In volatile action in the minutes following the opening bell, Silvergate shares were trading at $7.38 at press time.
In a filing late Wednesday, the California-based bank said it needed more than two additional weeks to finish producing its annual report, and said the impact of recent events raises questions about its ability to continue as a "going concern."
Two Wall Street sell-siders were quick to downgrade, with JPMorgan cutting to sell and Canaccord to hold. In addition, Coinbase Thursday morning announced its was switching from Silvergate to Signature Bank for servicing Prime account holders.