Silvergate Capital Corp says it has decided to wind down operations.
The crypto company will liquidate the Silvergate Bank as well.
Silvergate stock is now down close to 75% versus the start of 2023.
Shares of Silvergate Capital Corp (NYSE: SI) crashed about 40% in extended hours on Wednesday after the crypto bank confirmed that it has decided to wind down operations.
Silvergate to liquidate the ‘Bank’ as well
The announcement arrives about a week after Silvergate Capital Corp delayed the submission of its annual 10-K report. In a press release today, it also revealed plans of liquidating the Silvergate Bank.
In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward.
The California-based company has been struggling for a while and opted to lower its headcount by 40% in January. Versus the start of the new year, Silvergate stock is now down close to 75% at writing.
Silvergate discontinues its crypto-payments network
Silvergate Capital Corp has picked Centerview Partners LLC as its financial advisor while Cravath, Swaine & Moore LLP will act as its legal advisor through the process. The press release also reads:
Bank’s wind down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets.
Last week, the crypto company discontinued one of its core offerings – the Silvergate Exchange Network (SEN) but clarified that its other deposit-related services were still operational.
Silvergate currently has more than $11 billion in total assets. It’s the only crypto bank other than its bigger rival Signature Bank that has over $114 billion instead.
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