Silvergate plummeted after saying it may be "less than well-capitalized" in a Securities and Exchange Commission filing on Wednesday. The news sent other crypto-related stocks lower.
Silvergate shares were trading at $6.92, down 48% by 9:45 a.m. EST, according to TradingView data. Coinbase said it is no longer accepting or initiating payments to or from the crypto-friendly bank.
Silvergate told the Securities and Exchange Commission it may be “less than well-capitalized" and said it was “reevaluating its business." Shares plummeted after the close, trading around $9 in post-market trading.
KBW analysts led by Michael Perito downgraded the stock to market perform from outperform on Tuesday, citing "increasingly limited visibility." JPMorgan and Canaccord Genuity also downgraded the bank this week.
Silvergate remains one of the most shorted stocks on Wall Street, according to NYSE data via MarketWatch. Around 71% of outstanding shares were sold short as of Feb. 15.
Coinbase shares were down by 8% to trade below $60, while shares in Signature Bank slipped 5% to about $106. Signature's Signet could be considered an alternative to Silvergate's SEN network.
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