Silvergate Capital Corp, a leading crypto bank, has announced that it will be winding down its operations and liquidating the Silvergate Bank. The decision comes after the company delayed the submission of its annual 10-K report and cited recent industry and regulatory developments as the reason for the move.
Shares of Silvergate Capital Corp (NYSE: SI) plummeted by 40% in extended hours trading on Wednesday following the announcement. The stock is now down close to 75% compared to the start of 2023.
In a press release, the company stated that it believes an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward. The decision was made after careful consideration of the current market conditions and regulatory environment.
Silvergate Capital Corp has been a major player in the crypto industry, providing banking services to some of the largest crypto exchanges and institutional investors. The company’s decision to wind down its operations is a significant development for the industry and could have far-reaching implications.
Investors and industry experts are closely watching the situation and speculating on the potential impact on the broader crypto market. Some analysts believe that the move could signal a shift in the regulatory landscape and lead to increased scrutiny of crypto banks and exchanges.
Despite the uncertainty surrounding the future of Silvergate Capital Corp, the company remains committed to ensuring a smooth transition for its customers and employees. The company has stated that it will work closely with regulators and other stakeholders to ensure a responsible wind down of its operations.
