Silvergate Capital headquarters in La Jolla. San Diego’s crypto-friendly Silvergate Bank has disclosed that its financial health has taken a turn for the worse amid continued troubles plaguing the digital currency industry — raising questions about its ability to remain a going concern. Silvergate, which tailored its business toward providing deposit accounts, fund transfers, a real-time payments network and other banking infrastructure to the cryptocurrency industry, revealed that it has suffered additional losses in January and February from sales of debt securities that backstopped its crypto-related deposits. This story is for subscribers We offer subscribers exclusive access to our best journalism. Thank you for your support. Those losses will put pressure on the FDIC-insured bank’s regulatory capital reserves and “could result in the company and the bank being less than well-capitalized,” said Silvergate in a filing with the U.S. Securities and Exchange Commission on Wednesday. Under these conditions, Silvergate said it 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.” Silvergate said that it likely would be unable to file its annual report with the SEC by the March […]
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