• Silvergate Capital Corp (NYSE: SI) stock was cut nearly in half this morning after it delayed the submission of its annual 10-K report due to liquidity challenges.
• JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges.
• Canaccord Genuity also downgraded Silvergate stock and trimmed their price target o $9.0 a share. Coinbase also announced today that it had stopped payments to or from the crypto bank.
Silvergate Stock Crashes 50%
Silvergate Capital Corp (NYSE: SI) stock was cut nearly in half this morning after it delayed the submission of its annual 10-K report due to liquidity challenges. The crypto bank is facing an existential crisis following the FTX fiasco in early November, which has forced them to reevaluate their businesses and strategies in light of current business and regulatory difficulties.
JPMorgan Downgrades Silvergate Stock
JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges, with short-sellers contributing to a bank-run of sorts with Silvergate reporting a much greater level of deposit outflows than anticipated in Q4 and this likely continuing. In its latest reported quarter, Silvergate Capital had $1.0 billion of loss.
Canaccord Genuity Trims Price Target
Canaccord Genuity also downgraded Silvergate stock on Thursday and trimmed their price target o $9.0 a share. Coinbase also announced today that it had stopped payments to or from the crypto bank.
Existential Crisis for Crypto Bank
Silvergate Capital is now down 65% versus its year-to-date high as they face an existential crisis following the FTX fiasco in early November, which has forced them to reevaluate their businesses and strategies in light of current business and regulatory difficulties.
Conclusion
In conclusion, Silvergate Capital’s stock crashed 50% on Thursday after delaying submission of its annual 10-K report due to liquidity issues, while JPMorgan and Canaccord Genuity both downgraded their ratings for the company with lowered price targets set at $9/share each respectively; these events signal an existential crisis for the crypto bank as they try to navigate through difficult times ahead