• Silvergate Capital Corp’s stock was cut nearly in half after delaying the submission of its annual 10-K report.
• JPMorgan analyst downgraded Silvergate stock to „underweight“ citing liquidity challenges and deposit outflows.
• Coinbase also announced it had stopped payments to or from the crypto bank as well.
Silvergate Stock Plummets
Silvergate Capital Corp (NYSE: SI) saw its stock price plummet by nearly 50% on Thursday after announcing a delay in submitting its annual 10-K report. This follows an existential crisis for the crypto bank due to the FTX fiasco that occurred in early November.
JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges and short-sellers contributing to a bank-run of sorts with Silvergate reporting greater than expected deposit outflows in Q4. This could further weigh on their capital ratio.
Canaccord Genuity Downgrade
Analysts at Canaccord Genuity also downgraded Silvergate stock on Thursday and trimmed their price target o $9.0 a share, leaving investors with an uncertain future for the company’s stock price.
Coinbase Ceases Payments
Coinbase also announced today that it had stopped payments to or from the crypto bank, adding more uncertainty for shareholders about what this means for long term investments in Silvergate stocks.
Overall, investors are left with an uncertain future for Silvergate stocks as multiple analysts have downgraded them recently and Coinbase has ceased payments to or from the crypto bank leaving many wondering if they should continue holding onto their investments or not.