After FTX, a new plague victim to flee? – There Silvergate Bank and its parent company, Silvergate Capital Corporation, are under legal pressure following the disastrous explosion of FTX and the empire of Sam Bankman-Fried in November 2022. To the point of duty to delay a financial report eagerly awaited by observers fearing bankruptcy of the crypto bank. Some players in the cryptosphere are already distancing themselves.
A delay in the presentation of financial statements which is of great concern
The weather is getting worse and worse above the head of the group silver gate. It might even end up being struck down soon, which would explain why many are deviating from it lately. Indeed, on March 2, 2023, Silvergate Capital Corporation announced a worrying news. Silver Bank’s parent company was forced to delay deposit of its annual “10-K” report to the Securities and Exchange Commission (DRY).
There shareholder reaction did not wait. As trading reopened yesterday, the Silvergate (SI) share price collapsed by -40%passing $13.50 the day before (Wednesday 1er March) to below $8 this Thursday. At the time of this writing, the bleeding has worsened further, with a course around the $5.7. Or a fall of nearly -58% in 24 hours!
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Tether, Coinbase and others jump ship Silvergate
If shareholders massively abandon ship, they are not not the only ones to want to get away from this potential bomb about to explode. Announcements from crypto players to signal that they have no no/no more link with Silvergate are multiplying visibly.
Paolo Ardoinothe technical director (CTO) of Tether – stablecoin issuing company USDT – , thus affirmed that his company “has no exposure to Silvergate”. It’s a bit the same story at the crypto-stock exchange Coinbasewhich would have only one “minimum exposure” at Silvergate. Moreover, in this last case, Brian Armstrong’s group clearly announces cut ties with the sinking crypto bank, supposedly by simple “excess of caution”.
“At Coinbase, all customer funds continue to be safe, accessible, and available. In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate. »
MicroStrategy bitcoins are not in danger
On the side of MicroStrategyconcern was mounting, because the group founded by Michael Saylor has a loan guaranteed with bitcoins (BTC) at Silvergate. But fortunately it turns out that the bitcoins in question are not deposited from the crypto bank.
“We have a loan with Silvergate which is not due to be repaid until the first quarter of year 25. (…) For those who are wondering, the loan would not be accelerated in the event of insolvency or bankruptcy of Silvergate. Our bitcoin collateral is not held by Silvergate, with whom we have no other financial relationship. »
Of course, all this recent fuss around Silvergate Bank is not not without consequence in the cryptocurrency market. This fear of new bankruptcy in the sector is no doubt no stranger to the abrupt and violent drop of -1250 dollars on the price of Bitcoin, occurred a few hours after this announcement of late balance sheet with the SEC.
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