Silvergate Capital Corp. shares lost more than half their value Thursday to trade at a record low of $6.15 as several crypto companies ceased payment transactions with the lender.
Crypto exchange Coinbase
COIN,
said Thursday that it would stop sending payments to, or receiving payments from with the lender
SI,
“in light of recent developments & out of an abundance of caution.”
Digital asset financial services firm Galaxy Digital issued a similar statement on Twitter.
Stablecoin issuer Paxos has discontinued transfers to the company’s Silvergate account, but will continue to process all outgoing payments, the company said in a statement. Circle also said it is in the process of unwinding certain services with Silvergate.
The crypto companies made the moves after Silvergate said in a regulatory filing Wednesday that it would not be filing its audited 2022 annual report on time.
A series of events have left it at risk of “being less than well-capitalized,” and the company is evaluating those events’ impact on its ability to continue as a going concern, according to the filing.
“The Company is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the Company,” it added.
The crypto-friendly bank reported $1 billion loss for the fourth quarter of 2022.
