Silvergate Halts Crypto Payments Network, Causing Share Dip

The bank's shares hit a record low on Thursday, dropping more than 97% from their all-time high in November 2021.

On Wednesday, Silvergate filed a warning that it was assessing its ability to continue operating as a going concern.

The filing revealed that the bank had sold more debt securities this year at a loss, and due to further losses, it may not meet the criteria to be classified as "well capitalized."

As a result of this warning, prominent cryptocurrency companies, such as Coinbase Global Inc and Galaxy Digital, severed ties with Silvergate as their banking partner.

Other companies, including stablecoin issuers Paxos and Circle, Cboe's digital asset exchange, and crypto exchanges Bitstamp and Gemini, also suspended their partnerships with Silvergate.