Silvergate and crypto scandals - the price of shares shuffles along the bottom

Today, information hit the market that Coinbase Global's shares fell by more than 8% after giełda kryptowalut announced it was suspending all payments to and from Silvergate Bank.

Price chart CFD per share Coinbase. Source: CMC Markets platform Next Generation

Silvergate Bank in trouble?

The exchange's move came after Silvergate Bank announced it was delaying the filing of its annual 10-K report with the U.S. Securities and Exchange Commission (SEC), explaining that it expects further losses after selling additional debt securities in January and February. Silvergate Bank shares, the parent company of Silvergate Capital Corp, fell 46,53% to $7,18 at 9:33 a.m. ET. As a result, since the November 2021 peak, the bank's share price has fallen by about 97%. after an earlier rally of almost 2800 percent.

Silvergate Capital Corporation acts as the banking holding company for Silvergate Bank, which provides banking products and services to business and individual customers in the United States.

The company accepts deposit products, including interest-bearing and interest-free demand accounts, money market and savings accounts, and certificates of deposit.

The company's lending products include one to four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, storage mortgages and reverse mortgages, as well as consumer loans and other loans secured by personal property. .

The company also provides cash management services for cryptocurrency companies, which has become its main business in recent years. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.

Total deposits from digital asset customers fell to $2022 billion as of December 3,8, 31, compared to $2022 billion as of September 11,9, 30, the company said in its fourth-quarter 2022 data release.

Average digital asset customer deposits decreased to $7,3 billion in Q2022 12,0, compared to $2022 billion in Q31 2022. As of December 150, XNUMX, approximately $XNUMX million of Silvergate deposits came from customers, who have filed for bankruptcy.

Price chart CFD per share Silvergate Capital Corp. Source: CMC Markets platform Next Generation

For the period, the company said it posted a net loss of $1 billion in the fourth quarter, after earlier this month it said investors feared by the collapse of the cryptocurrency exchange FTX pulled over $8 billion in deposits in the last three months of 2022.