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- 1 Silvergate stock (NYSE: SI) is at its all time low.
- 2 Currently trading at 5.7 USD, about 97% down from its all time high.
Silvergate Capital Corp (NYSE: SI) decides to shut down its crypto payments network, Silvergate Exchange Network. Reuters reported the “risk based decision” came in the wake of the financial company’s concerns around its viability.
As reported, Silvergate’s website stated that Silvergate Bank decided to “discontinue the Silvergate Exchange Network (SEN).” Further it ensures the other services related to deposit operations will remain functional.
SEN is popular within the industry for providing 24×7 transfer services facilitating transactions between investors and crypto exchanges. It acted as a potential alternative to the time taking traditional wire transfers. Discounting its crypto asset payments provider is another setback added in the list of mishaps which Silvergate was facing.
Silvergate’s 10-Filing Delay Started Rolling the Ball
It all started for Silvergate soon after its filing to the United States Securities and Exchange Commission about delay in its annual report. The crypto-friendly bank noted that it would take it until March 16, 2023 to file its annual 10-K filing. The filing provided several reasons for the delay report’s impediment. It asked for more time citing accounting firms taking a long to get done with the certain audit procedures. Additionally the firm stated about analyzing the regulatory inquiries and investigations
Silvergate stock price took a hit following the annual report’s postponement in addition to KBW analyst downgrading SI stock’s rating and price target. SI stock tumbled over 30% in the after hours trading session at the time. The post trading session fall only worsened in the following day’s trading session when Silvergate stock tumbled drastically.
TheCoinRepublic reported earlier that Silvergate lost its prestigious clientele which resulted in its stock price nosediving. Crypto exchanges Coinbase, Crypto.com, Bitstamp, Gemini, stablecoin issuer Paxos and Circle, Cboe Digital Market and Galaxy Digital were said to suspend their existing connections with the bank. The Automated Clearing House (ACH) transfers and other existing business operations were discounted from Thursday, March 2, 2023.
Silvergate stock took a massive hit and dropped over 57% in the 24 hours from about 13.5 USD to 5.66 USD. The significant decline resulted in the price trading at about 97% down from its all time high attained in August 2021.
At its peak during the crypto markets’ bullish trend, Silvergate Exchange Network was reportedly at its peak. The total volume over the platform was said to be its highest point of transfers with 406 billion USD in the first half of 2021. This faded with the crypto industry’s downturn during last year’s crypto winter when it slithered to 230 billion USD by the second half.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
