Silvergate’s Warning Triggers 35% Plunge

03/02/2023 12:45 • Daily Digest • 72 views

It is reported that Silvergate, a digital currency financial service company, plunged 35% before the market on Thursday. The company had previously warned that due to the sale of a large number of assets, the capital was exhausted, and it would be difficult to repay the due loans, so it might not be able to continue operating. Silvergate also said that it was selling its securities portfolio to meet customers’ withdrawal requirements. However, the company said that the sale transaction had caused a loss of US $1 billion in the fourth quarter of last year, and the company also warned that the sale of these securities portfolios might cause more non-temporary impairment and further losses.

Silvergate, a cryptocurrency finance company, warned that it might not continue to operate

Interpretation of the news:

Silvergate, a digital currency financial service company, has hit the headlines after its stock fell by 35% before the market opened on Thursday. The crash comes after the company warned that it would be unable to repay its loans due to the sale of a considerable number of assets, putting into question its ability to continue operating. Furthermore, Silvergate has disclosed that it is selling its securities portfolio in a bid to meet the requirements of customers who wish to withdraw their funds.

The implications of this announcement reverberated across the market, with investors left in a state of uncertainty about the future of the company. On one hand, selling the securities portfolio may be seen as a move towards stabilizing the company’s finances. On the other hand, the sale caused a USD1 billion loss in the fourth quarter of last year, and the company warned that this would lead to more non-temporary impairment and possible further losses.

In light of these developments, investors are left feeling uneasy about the future prospects of Silvergate. With the company having already undergone significant losses due to the sale of securities, many will now be asking whether or not the company is viable in the long run. The continued need to meet customer withdrawal requests means that the company could face a difficult balancing act as it seeks to maintain financial viability while meeting these obligations.

In conclusion, Silvergate’s recent announcement has sent shockwaves through the market, and the future of the company is now uncertain. Its move to sell its securities portfolio may be seen as a necessary step given the capital exhaustion resulting from the sale of assets. However, the market will be watching closely to see how the company manages its financial affairs in the coming weeks and months.

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Silvergate’s Warning Triggers 35% Plunge

Silvergate, a cryptocurrency finance company, warned that it might not continue to operate

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