Silvergate Capital Corp. shares lost more than half their value Thursday to trade at a record low of $6.15 as several crypto companies ceased payment transactions with the lender.
Crypto exchange Coinbase COIN, -3.31% said Thursday that it would stop sending payments to, or receiving payments from with the lender SI, -53.14% “in light of recent developments & out of an abundance of caution.”
Digital asset financial services firm Galaxy Digital issued a similar statement on Twitter.
Stablecoin issuer Paxos has discontinued transfers to the company’s Silvergate account, but will continue to process all outgoing payments, the company said in a statement. Circle also said it is in the process of unwinding certain services with Silvergate.
The crypto companies made the moves after Silvergate said in a regulatory filing Wednesday that it would not be filing its audited 2022 annual report on time.
A series of events have left it at risk of “being less than well-capitalized,” and the company is evaluating those events’ impact on its ability to continue as a going concern, according to the filing.
“The Company is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the Company,” it added.
The crypto-friendly bank reported $1 billion loss for the fourth quarter of 2022.