Silvergate Bank‘s stock price tumbled more than 30% amid hear there was a delay in publishing the bank’s annual 10-K report. This event carries the risk of triggering an uneasiness in the cryptocurrency market.
The Securities and Exchange Commission (SEC) mandates the 10-K report, which provides a comprehensive review of a company’s financial condition and business activities. Cryptocurrency The bank announced that it will need an extra two weeks to finish its fiscal 2022 report.
At Wednesday’s close, Silvergate shares (SI) were trading at $13.53. However, after the announcement, the price dropped as much as 31.7% in after-hours trading to below $10.
According to Silvergate, “these additional losses will adversely affect the regulatory capital ratios of the company and its wholly-owned subsidiary, Silvergate Bank. […] and may result in the Company and Bank being less than well-capitalized.”
Koinfinans.com As we reported, in the last quarter of 2022, Silvergate announced a net loss of $1 billion and a decrease of $14 billion in customer deposits, blaming the “planned reduction in digital asset banking deposits” and general turmoil in the market. FTXThe bank’s deposits tumbled after the collapse of , prompting it to apply to the Federal Home Loan Bank (FHLB) for a $4.3 billion loan in January.
The bank also added that it is “in the process of reassessing its business and strategies in light of the commercial and regulatory challenges it is currently facing.”
Silvergate also announced that it is taking additional steps and providing documentation to complete certain audits requested by the independent certified public accounting firm.
“The Company is assessing the impact of these subsequent events on its ability to continue as a going concern for the twelve months following the issue of its financial statements.”
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