Silvergate stock falls 31% after a missed filing casts doubt on the company’s survival


The bank Silvergate has delayed releasing its 10-K, an annual report on the company’s financial condition. The announcement has caused a 31% decline in the stock price.

Silvergate Bank has stated that it would postpone the submission of its annual 10-K report, causing its stock price to decline by more than 30 percent after hours.

A 10-K report is a document mandated by the Securities and Exchange Commission that offers an extensive overview of the business and financial situation of a firm. The cryptocurrency bank said that it will need an extra two weeks to finish the report for the fiscal year 2022.

In its notice of late filing, Silvergate indicated that it issued more debt instruments in January and February and anticipates incurring significant losses in the future months.

In its late-notice filing, the company noted, “These additional losses will have a detrimental effect on the regulatory capital ratios of the Company and the Company’s wholly owned subsidiary, Silvergate Bank (the “Bank”), and might result in the Company and the Bank being less well-capitalized.”

As asked by its independent certified public accounting firm, the cryptocurrency bank is in the midst of completing a series of audits by undertaking extra processes and producing evidence.

A variety of things might have an influence on the firm’s financial health in the near future, according to Silvergate.

Among them are the significant market volatility witnessed in the fourth quarter of 2022, the multiple high-profile bankruptcies in 2022 that have shaken investor trust in cryptocurrencies, and the increased regulatory scrutiny of banks that provide digital asset services.

In addition to any possible liabilities or constraints the business may face as a result of litigation, the corporation indicated that client retention may be a concern.

At the time of writing, Cointelegraph has reached out to Silvergate for comment but had not yet received a response.

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