The crypto-focused bank was dealt a double blow by the bear market and its close exposure to Sam Bankman-Fried's FTX empire.
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Silvergate Bank has warned it may not be able to survive over the next 12 months.
The crypto-focused company was dealt a double blow by the bear market and its close exposure to Sam Bankman-Fried's FTX empire.
In a filing to the U.S. Securities and Exchange Commission, it warned that its annual report would not be filed on time.
And while Silvergate brought in a profit of $76m in 2021, it suffered a net loss of $949m in 2022.
Silvergate's stock fell by 44.2% in after-hours trading to lows of $7.55 — a stark contrast to its price of $13.53 as of Wednesday's close.
During the height of the bull run in November 2021, the stock was trading at highs of $219 — meaning its share price has plunged by 96.5% in a little under 18 months.
Coinbase has announced that it is no longer accepting or initiating payments to or from Silvergate "out of an abundance of caution" — and stressed all client funds remain safe, accessible and available. It added:
"Coinbase will be facilitating institutional client cash transactions with our other banking partners and have taken proactive action to help ensure that clients experience no impact from this change."
The exchange also stressed it has "de minimis corporate exposure to Silvergate."
