Silvergate Capital Stock Is Tumbling And Taking The Crypto Market With It

Silvergate Capital Corp SI shares are plunging Thursday after the company said it will wind down operations and voluntarily liquidate Silvergate Bank. Several top cryptocurrencies are selling off alongside the crypto-linked company.

What To Know: Silvergate's liquidation plan includes full repayment of all deposits. The company also said it's considering how best to resolve claims and preserve the residual value of its assets.

In addition, the bank decided to discontinue the Silvergate Exchange Network, which was just announced on March 3.

"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 in a release.

The news comes about a week after Silvergate delayed the filing of its annual report with the SEC and said it was analyzing regulatory inquiries and pending investigations.

Bitcoin BTC/USD was last down 1.87% at $21,705, hitting its lowest levels since mid-February, while Ethereum ETH was down 1.43% at $1,536.41. Several other top cryptocurrencies were giving up gains in the wake of the Silvergate collapse.

See Also: Bitcoin, Ethereum Derivatives Trading Skyrocket in February — And You Won't Believe The Numbers

SI Price Action: Silvergate shares were down 31.4% at $3.38 at the time of publication, according to Benzinga Pro The heavily shorted stock is now down more than 97% over the last year.

Photo: mohamed_hassan from Pixabay.