Silvergate Capital Plans to Wind Down Silvergate Bank, Shares Drop 39.5%
March 08 2023 - 5:30PM
Dow Jones News
By Stephen Nakrosis
Silvergate Capital Corp. shares plunged 39.5% to $2.97 in
after-hours trading Wednesday following news the company plans to
voluntarily wind down and liquidate Silvergate Bank.
The stock closed the day's regular session with a 5.76% loss,
finishing the day at $4.91 per share. Earlier Wednesday, shares
touched a 52-week low of $4.57 each.
The La Jolla, Calif., bank, which is focused on the crypto
currency market, ran into trouble when it delayed filing its annual
report earlier this month. The company also said it was at risk of
being "less than well capitalized" after recent events in that
market.
"In light of recent industry and regulatory developments,
Silvergate believes that an orderly wind down of Bank operations
and a voluntary liquidation of the Bank is the best path forward,"
the company said. It added "the bank's wind down and liquidation
plan includes full repayment of all deposits."
Earlier this month, the company made the decision to discontinue
the Silvergate Exchange Network.
"All other deposit-related services remain operational as the
company works through the wind down process," Silvergate said.
Silvergate Capital said it is "is also considering how best to
resolve claims and preserve the residual value of its assets,
including its proprietary technology and tax assets."
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
March 08, 2023 17:15 ET (22:15 GMT)
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