Silvergate stock plunges 31% after delayed filing raises doubts over future

Silvergate Bank has announced a postponement. filing The annual report’s 10-K report saw stocks fall more than 30% after hours.

A 10-K report is a document required by the Securities and Exchange Commission that provides a comprehensive overview of a company’s business and financial condition. Crypto Bank said it will take another two weeks to finalize its fiscal 2022 report.

silver gate explained In a late filing notice, it sold additional debt securities in January and February and plans to record further losses in the coming months.

“These additional losses will adversely affect the regulatory capital adequacy of our company and our wholly-owned subsidiary Silvergate Bank (the “Bank”) and could lead to our and the bank becoming undercapitalised. ‘ said the company. In that late notice filing.

“In addition, we are evaluating the impact of these subsequent events on our ability to continue as a going concern for the 12 months following the issuance of our financial statements,” the company added.

We are currently in the process of re-evaluating our business and strategy in light of the business and regulatory challenges we currently face.

The crypto bank added that it is in the process of performing additional steps and providing documentation requested by an independent registered public accounting firm to complete a series of audits.

Silvergate explained that a number of factors are, or could be, affecting the company’s financial condition in the near future.

Among them are the significant market volatility experienced in the fourth quarter of 2022, several high-profile bankruptcies in 2022 that disrupted investor confidence in cryptocurrencies, and regulatory restrictions on banks offering digital asset services. Includes tightening.

The company added that customer retention could be an issue, in addition to potential liability and company limitations that could be caused by lawsuits.

This is a work in progress and more information will be added as it becomes available.