) fell 10% in early trading on Monday after the bank suspended its crypto payments network and expressed doubts over the viability of its business.
“The SEN is Silvergate’s main flagship product that previously was the key attraction for depositors to bring funds to the bank,” said analysts at Wedbush. Shares of crypto lending peer Signature Bank also fell roughly 2.5% in morning trade, while crypto exchange Coinbase Global was down nearly 1%. Crypto firm Riot Platforms Inc, and BTC mining machine makers Ebang International and Canaan Inc drop between 1% and 2%.
Shares of Silvergate hit a record low of $4.86 on Friday, shedding nearly 98% of their value since an all-time high close in November 2021 and wiping out more than $7 billion from the company’s market capitalization. “We believe a receivership/liquidation scenario is a distinct possibility and arrive at a liquidation value of $5 per share,” Wedbush analysts said. The estimated price marks a roughly 13% downside to the stock’s previous close.