by Silvergate Bank is one of the top names of fallen victims to the crypto plague caused by the collapse of FTX.
In a March 1 filing, Silvergate Bank delayed the filing of its annual 10-K report. The bank asked for an additional two weeks to complete the report for the 2022 tax year.
The 10-K Report is a comprehensive annual report that publicly traded companies in the United States must file with the Securities and Exchange Commission (SEC). The report provides a detailed overview of the company’s financial performance, business activities and risks.
The purpose of 10-K reports is to provide investors with a comprehensive understanding of a company’s financial condition and business operations to help make informed decisions about investing in the company’s stock. The SEC requires companies to file 10-K reports within 60 days after the end of the tax year.
The bank is in serious trouble
Due to the delay in submitting the application, the struggling bank expects further losses in the coming months, as highlighted in the application. This comes after the bank sold additional securities over the past two months to pay off outstanding advances on the Federal Home Loan Bank.
“These additional losses will have a negative impact on the regulatory capital ratios of the Company and the Company’s subsidiary, Silvergate Bank (the “Bank”), and may result in the Company and the Bank being less than well capitalized, the company said in the delayed filing.
Therefore, I am asking for time until March 16 to analyze the above issues. Addition to reasons for filing: Silverbank’s (independent) auditor needs time to audit.
As a result, Silvergate shareholders seemed less than happy as the shares plummeted after the market news was released. Undoubtedly, uncertainty over Silvergate’s financial health put downward pressure on its share price, which then fell more than 31% in off-hours trading.
Unfortunately, according to NYSE data provided by MarketWatch, the bank is one of the most underperforming stocks on the market.
A series of bad factors led to the fall
The crypto-friendly bank has been under the regulatory radar given its association with the failed exchange FTX. Recently, with Binance, the largest crypto exchange by trading volume. The chaotic nature of this development could cause a significant blow to the investors/shareholders involved.
Moreover, other cryptocurrency platforms have distanced themselves from the struggling bank. LedgerX (cryptocurrency derivatives exchange) was the latest platform to make this transition. Such narratives often spoil the mood in the cryptocurrency markets. Here is one possible scenario that could happen.
Overall, there were growing concerns about the troubled bank given its financial difficulties. Also, this won’t be the first time a probable collapse leads to multiple corrections in the cryptocurrency market.
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BeInCrypto has contacted the company or person involved in the story for an official statement on recent developments, but has yet to receive a response.
