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Crypto bank Silvergate warns on ability to survive

Shares in Silvergate plunged by more than 30% in after hours trading after the crypto-focused bank warned it will miss the deadline to file its annual report and raised questions about its ability to survive as a going concern.

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Crypto bank Silvergate warns on ability to survive

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In an SEC filing, Silvergate says it does not "expect to be in a position" to file its annual report by an already extended deadline of 16 March.

The bank, which has been heavily impacted by collapse of crypto exchange FTX, says it is "currently analysing certain regulatory and other inquiries and investigations that are pending with respect to the Company".

In January, Silvergate posted a $1 billion loss for the fourth quarter related to the FTX collapse.

However, the bank now says it is still assessing the damage it suffered and warned that the losses could be even greater.

Additional losses "will negatively impact the regulatory capital ratios" of Silvergate and could result in it "being less than well-capitalised," says the SEC filing.

"In addition, the Company is evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements."

Shares in Silvergate fell by as much as 40% in after hours trading on the news.

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