NEW YORK: Shares of cryptocurrency-related companies fell in premarket trading on Monday Silvergate Capital Corp pulled the plug on the crypto-payments network, questioning the viability of its business.
The digital asset-focused bank said late on Friday it had made a “risk-based decision” to stop taking immediate action. Silvergate Exchange network (SEN).
shares La Jolla, the California-based bank fell more than 4% in premarket trading, while fellow crypto-lending firm Signature Bank fell 3%. Crypto exchange Coinbase Global and BTC mining machine maker Ebang International each fell about 1%.
“Crypto markets have both responded to the negative news from Silvergate Bitcoin and Ethereum is down ~4.8% for the week,” Bernstein brokerage analysts said in an industry note.
A number of cryptocurrency companies, including Coinbase Global and Galaxy Digital, dropped Silvergate as a banking partner after the lender’s latest filing raised questions about its ability to continue as a going concern.
Shares of Silvergate hit a record low of $4.86 on Friday, shedding nearly 98% of their value since their record close in November 2021 and wiping more than $7 billion off the company’s market capitalization.
The firm struggled to survive after the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange in November, prompting investors to withdraw $8 billion in deposits from the bank in the last three months of the year.
Silvergate reported a net loss of $1 billion in the fourth quarter.
The digital asset-focused bank said late on Friday it had made a “risk-based decision” to stop taking immediate action. Silvergate Exchange network (SEN).
shares La Jolla, the California-based bank fell more than 4% in premarket trading, while fellow crypto-lending firm Signature Bank fell 3%. Crypto exchange Coinbase Global and BTC mining machine maker Ebang International each fell about 1%.
“Crypto markets have both responded to the negative news from Silvergate Bitcoin and Ethereum is down ~4.8% for the week,” Bernstein brokerage analysts said in an industry note.
A number of cryptocurrency companies, including Coinbase Global and Galaxy Digital, dropped Silvergate as a banking partner after the lender’s latest filing raised questions about its ability to continue as a going concern.
Shares of Silvergate hit a record low of $4.86 on Friday, shedding nearly 98% of their value since their record close in November 2021 and wiping more than $7 billion off the company’s market capitalization.
The firm struggled to survive after the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange in November, prompting investors to withdraw $8 billion in deposits from the bank in the last three months of the year.
Silvergate reported a net loss of $1 billion in the fourth quarter.
