Why Silvergate Capital Stock Crashed 55% Today
The news went from bad to worse today for Silvergate Capital (NYSE: SI), the crypto bank that's been under financial pressure for months. In a filing with the Securities and Exchange Commission (SEC), the company said it is evaluating "its ability to continue as a going concern," which is often a precursor to filing for bankruptcy.
Shares fell as much as 55.2% on Thursday and were down 53.7% as of 2:20 p.m. ET.
The SEC filing was made to tell investors that the 10-K annual filing will be delayed. Some of the reasons cited for the delay were the need for time to evaluate internal controls, completion of independent audits, and recording journal entries related to major events. The "going concern" line I highlighted above was included later in the report.
Source Fool.com
