The crypto-friendly Bank Silvergate is reportedly under a very big financial crisis and the backend company is delaying reporting its financial report. The whole news acted as a catalyst to reduce the confidence of Silvergate stock traders.
Silvergate Bank is a Californian bank that mostly deals in cryptocurrency transactions. Initially, this bank was founded in 1988 as a savings & loan association but was later reorganised into a bank by Dennis Frank and Derek J. Eisele. Alan Lane is the current CEO of this bank & Ben Reynolds is the president. In 2013, Lane invested in Bitcoin and later realised that the Bank can expand its business in the crypto sector. To this date, Silvergate Bank is the top best crypto-friendly banking partner.
Just a couple of days ago, Silvergate announced that it will take additional two weeks for the 10K filing, to report its 2022 financial overview.
10k-filing is a financial disclosure of the company’s business, which helps stakeholders to understand whether the company generated profit or faced loss in that particular year. In short, 10K filing is an annual financial report.
Through the announcement, Silvergate confirmed that the company faced loss in the first two months of 2023 & also expected to face loss in the upcoming few months citing a critical situation.
Further, the company confirmed that it is facing significant regulatory pressure as well as loss pressure because of the bad incidents that happened in the crypto sector in 2022.
“The Company is currently in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces,” the company added.
Experts noted that retail crypto investors can’t guess the level of this critical situation but can be seen through the current downfall in the stock price of Silvergate, which is very low from its all-time low.
At the time of publication of this article, the current trade price of SI stock is 57.72% down over the last 24 hours’ trade price.
Read also: Coinbase CEO explains why the exchange delisted Binance stablecoin