NYSE Delists Crypto Banking Giant Silvergate
- Antwan Koss
- May 31, 2023
- news, Crypto
- Crypto, FTX, Liquidition, NYSE, Silvergate
- 0 Comments
The New York Stock Exchange has finally delisted Silveragte, a well-known bank in the cryptocurrency sector. Earlier, Silvergate had declared its intention to wind up its operations and banking services.
This decision came after the downfall of FTX, a crypto exchange, which prompted Silvergate to assess its capability to keep functioning. Silvergate has been one of the leading two banks catering to the crypto industry, alongside Signature Bank. As per the liquidation strategy revealed by Silvergate Capital, all customers’ deposits will be entirely reimbursed.
Signature NYSE Delisting
Silvergate, a California-based firm that made its debut on the NYSE through an IPO at $12/share in June 2019, experienced a remarkable increase in its stock price, reaching almost $240/share in November 2021. Nevertheless, at present, a single share of Silvergate Capital Corp can be purchased for less than $1 on OTC Markets. The company’s delisting was officially confirmed on May 11, 2023, resulting in the termination of over 200 jobs, and all remaining properties are due to be liquidated by November of this year.
Silvergate Bank’s total assets amount to slightly over $11 billion, which is considerably less than Signature Bank’s asset value which exceeds $114 billion. The bank has recently ceased the operations of the Silvergate Exchange Network, a crucial payment platform that was one of its primary offerings. As a result, the bank has been recently delisted from the New York Stock Exchange and has initiated the process of liquidation.
Reasons for Signature Liquidation
Silvergate Bank’s choice to liquidate was influenced by several factors, including the significant decline of the cryptocurrency market. This led to the bank experiencing billions of dollars in deposit outflows in recent months. Moreover, the discontinuation of the Silvergate Exchange Network, a crucial component of its offerings, also played a role in the bank’s decision to liquidate.
Moreover, the bank faced criticism when it disclosed that it needed to delay the submission of its annual 10-K report due to certain doubts raised by its external auditors and accounting company concerning its data. Additionally, there were rumors that the bank was cut off from loans, which ultimately triggered a bank run on Silvergate.
There were also speculations that the bank’s choice to liquidate was partly aimed at reducing Silvergate Bank’s legal responsibility concerning FTX’s insolvency.
