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More Crypto Market Downturn Looms Ahead Over Delayed Silvergate Bank Filing

 2 years ago
source link: https://cryptomode.com/more-crypto-market-downturn-looms-ahead-over-delayed-silvergate-bank-filing/
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More Crypto Market Downturn Looms Ahead Over Delayed Silvergate Bank Filing

March 2, 2023
CryptoMode Altcoins Volatility Volatile Silvergate Bank
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Silvergate Bank has announced a delay in filing its annual 10-K report, causing a more than 30% decline in its stock price after hours. 

A 10-K report is a mandatory document required by the Securities and Exchange Commission (SEC) that offers a comprehensive overview of a company’s financial condition and business. The crypto bank stated that it would need an additional two weeks to complete the report for the 2022 fiscal year. That announcement did not go over well with shareholders. It also sparks fear among cryptocurrency enthusiasts. 

In its late filing notice, Silvergate disclosed that it sold additional debt securities in January and February and expected to record further losses in the coming months. 

As a result, the regulatory capital ratios of the company and its wholly-owned subsidiary, Silvergate Bank, may be negatively impacted. That can potentially result in the two entities being less than well-capitalized.

“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,” Silvergate added. 

Furthermore, the company is re-evaluating its businesses and strategies in response to its current business and regulatory challenges.

Silvergate is also conducting additional procedures and providing documentation as requested by its independent registered public accounting firm to complete a series of audits. 

The crypto bank further explained that several factors, including substantial market volatility, high-profile bankruptcies, and stricter regulatory oversight, could affect the firm’s financial health shortly. Additionally, customer retention and potential liabilities or restrictions brought about by litigation may become an issue.

This development marks yet another chapter in the growing list of incidents that have rocked the crypto industry in 2022 and beyond. 

Companies need to adopt prudent business strategies and respond effectively to regulatory challenges to mitigate potential risks. Unfortunately, many centralized service providers fall short on that front. 

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.


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