Silvergate stock plunges 31% after delayed filing raises doubts over future

Silvergate Bank has announced that it will delay the filing of its annual 10-K report, which has sent its stock price down over 30% after hours.

A 10-K report is a document required by the Securities and Exchange Commission which provides a comprehensive overview of the company’s business and financial condition. The crypto bank stated that it would need an additional two weeks to complete the report for the 2022 fiscal year.

Silvergate explained in its late filing notice that it sold additional debt securities in January and February and expects to record further losses in the coming months.

“These additional losses will negatively impact the regulatory capital ratios of the Company and the Company’s wholly owned subsidiary, Silvergate Bank (the “Bank”), and could result in the Company and the Bank being less than well-capitalized,” the firm stated in its late notice 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,” said the company adding: 

 The Company is currently in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces.

The crypto bank added that they’re process of conducting additional procedures and providing documentation as requested by its independent registered public accounting firm to complete a series of audits.

This is a developing story and more information will be added as it becomes available.