Shares of Silvergate Capital (SI) fell 57% in a single trading day after the cryptocurrency bank delayed the filing of its annual report and other documents required by U.S. regulators.
The company, which provides banking services to cryptocurrency businesses, has now seen its stock price plunge 95% in the last 12 months.
Silvergate said in a statement that it needs additional time for its accounting firm to complete several audit procedures and that it’s preoccupied with “analyzing certain regulatory and other inquiries and investigations.”
The company also raised doubts about its “ability to continue as a going concern.” Silvergate said in its written statement that unaudited financial results for 2022 included a net loss of $948.7 million U.S., compared with net income of $75.5 million in 2021.
Analysts across Wall Street, including at JPMorgan Chase (JPM), were quick to downgrade Silvergate shares on this latest development.
Silvergate has grappled with several problems since the collapse of cryptocurrency exchange FTX last fall.
In January, the company’s stock endured a 40% drop in a single day after reporting massive customer withdrawals in the fourth quarter of last year.
In February of this year, the U.S. Department of Justice opened an investigation into Silvergate’s dealings with FTX and its sister company Alameda Research.
Silvergate Capital’s stock is currently trading at $5.72 U.S. per share.
