Silvergate Capital Corp. stock is down 45% in premarket trades on Thursday after the company delayed its financial statements and said it’s evaluating its ability to continue operating for next 12 months, as the crypto asset bank scrambles to cover withdrawals tied to the crypto market meltdown.
Silvergate Capital SI said it expects to record further losses related to its impairment on its securities portfolio, after it sold additional debt securities to cover withdrawals. “The company is evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements,” Silvergate said.
“With the company having sold additional securities at a loss in January/February, this reflects that the company is facing continued liquidity challenges,” Alexopoulos said.