• Silvergate Capital Corp (NYSE: SI) stock was cut nearly in half this morning due to a delayed 10-K report submission.
• JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges.
• Coinbase also announced that it had stopped payments to or from the crypto bank.
Silvergate Stock Crashed 50% on Thursday
Silvergate Capital Corp (NYSE: SI) was cut nearly in half this morning after it delayed the submission of its annual 10-K report. The crypto bank is facing an existential crisis following the FTX fiasco in early November and is evaluating its ability to continue as a going concern. Silvergate stock is now down about 65% versus its year-to-date high.
JPMorgan Downgrades Silvergate Stock
On Thursday, JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges, with short sellers likely contributing to a bank run of sorts with Silvergate reporting a much greater level of deposit outflows than anticipated in Q4 and this likely continuing. In its latest reported quarter, Silvergate Capital had $1.0 billion of loss.
Coinbase Stops Payments To/From Crypto Bank
Coinbase also announced today that it had stopped payments to or from the crypto bank, while analysts at Canaccord Genuity also downgraded Silvergate stock on Thursday and trimmed their price target o $9.0 a share.
Existential Crisis Follows FTX Fiasco
Silvergate Capital is facing an existential crisis following the FTX fiasco in early November which has resulted in them having offload more assets than expected over the past two months, which could weigh on its capital ratio..
Overall, Silvergate stock has been cut nearly in half due to both internal struggles and external factors such as short sellers affecting their liquidity situation and Coinbase halting payments to and from the crypto bank. Analysts have further downgraded their outlook on the financial services company due to these issues with no signs of improvement yet seen