Silvergate Bank specializing in crypto assets, stock price drops more than 50% | coindesk JAPAN | Coindesk Japan

Silvergate Capital (SI), a bank focused on crypto assets, lost more than 50% of its stock price on March 2 due to doubts about its business continuity due to losses after the FTX bankruptcy in November last year and various regulatory issues. The lowest price ever.

The bank will be one day late, will need more than two weeks to prepare its annual report (Form 10-K, equivalent to Japan’s securities report), and the impact of recent events will affect its ability to continue operations. said it could come out. The majority of customers have also stopped doing business with the bank following the announcement.

2nd, Coinbase, Circle, Paxos, Crypto.com, Bitstamp, Cboe Digital Markets, Galaxy Digital, Gemini ) announced that it would cease trading with the bank.

The bank also said in documents filed Monday that it must repay a Federal Home Loan Bank loan it took out last year.

“Since December 31, 2022, a number of circumstances have occurred that adversely affect the timing and pre-audit results previously reported in our earnings releases, primarily at the Federal Home Loan Bank (FHLB) of San Francisco. such as the sale of additional securities beyond expectations to fully repay the unpaid advances to

Crypto news outlet Protos reported in January that both Silvergate and rival Signature have combined up to $15 billion in FHLB loans.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Will Foxley/CoinDesk
| Original: Silvergate Stock Drops Over 50% as Crypto Clients Flee Beleaguered Bank