• Silvergate Capital stock crashed 50% on Thursday due to delayed submission of its annual 10-K report and JPMorgan downgrading it to underweight.
• Silvergate Capital is now down 65% versus its year-to-date high and facing an existential crisis following the FTX fiasco in early November.
• Coinbase also announced today that it had stopped payments to or from the crypto bank and Canaccord Genuity also downgraded Silvergate stock with a price target of $9.0 a share.

Delayed Submission of Annual 10-K Report

Silvergate Capital Corp (NYSE: SI) was cut nearly in half this morning after it delayed the submission of its annual 10-K report. On Tuesday, Silvergate Capital said in a filing with the U.S. Securities and Exchange Commission (SEC): The Company is evaluating its ability to continue as a going concern [and] is in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces. The lender also confirmed that it had to offload more assets than expected over the past two months, which could weigh on its capital ratio.

JPMorgan Downgrades Stock

Also on Thursday, JPMorgan analyst Steven Alexopoulos downgraded the financial services company to „underweight“ citing continued liquidity challenges. In its latest reported quarter, Silvergate Capital had $1 billion loss due to short sellers contributing to a “bank run” with large deposit outflows than anticipated in Q4.

Canaccord Genuity Downgrades Stock

Analysts at Canaccord Genuity also downgraded Silvergate stock on Thursday and trimmed their price target o $9.0 a share. The crypto bank is now facing an existential crisis following the FTX fiasco in early November, pushing their stock 65% lower compared to their year-to-date high mark before today’s crash.

Coinbase Stops Payments To/From Crypto Bank

Coinbase also announced today that it had stopped payments to or from Silvergate Bank due to liquidity concerns surrounding them since their last earnings call late February 2023 reporting large deposit outflows than anticipated for Q4 2023 earnings report..

Summary

To summarize, Silvergate Capital Corporation’s stock has been cut nearly half after they delayed submitting their 10k report while JPMorgan analyst Steven Alexopoulos downgraded their stock further citing liquidity issues leading up to huge deposit outflows than expected in Q4 2023 earnings report causing an existential crisis for them resulting in their stock dropping by 65%. Analysts at Canaccord Genuity also downgraded their stock trimming their price target o $9 per share while Coinbase stopped all payments associated with this crypto bank leaving them vulnerable against short sellers and other market forces beyond any control currently possesed by them as they attempt to stay afloat during this challenging environment