Silvergate says it could be less than well capitalized
Shares slump 29.3 premarket

March 1 Reuters Shares of Silvergate Capital Corp slumped 29 in premarket trading on Thursday, after the cryptocurrencyfocused lender warned it was delaying its annual report and said it was evaluating its ability to operate as a going concern.

Silvergate reported a 1 billion loss for the fourth quarter as investors raced to withdraw deposits in the wake of crypto exchange FTX39;s bankruptcy, and the firm39;s troubles highlight the fragility of confidence in digital assets.

The company said it would be unable to meet an extended March 16 deadline for submitting its annual report. It also said, in a filing to the Securities and Exchange Commission, that it had sold additional debt securities to repay debts this year and that further losses mean the bank could be less than well capitalized.

Silvergate is evaluating the impact that these subsequent events have on its ability to continue as a going concern, it said. The Company is currently in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces.

J.P. Morgan downgraded its rating on Silvergate39;s stock to underweight from neutral and withdrew its price target, saying the sale of additional securities suggests that the firm is facing continued liquidity challenges.

We now see elevated risk of further downside in SI shares given the outstanding risk that the bank…