Silvergate Capital Corp., a crypto-friendly lender, saw its shares plunge more than 30% in after-hours trading on Wednesday after the company announced that it would not be filing its audited 2022 annual report on time. Silvergate further revealed in a regulatory filing that a series of events have left it at risk of “being less than well-capitalized” and the company is assessing the impact of these events on its ability to continue as a going concern.
The filing also stated that Silvergate is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the company. Silvergate reported an unaudited net income of $2.1 million for the fourth quarter of 2021, which was significantly lower than the $4.4 million reported in the same quarter of 2020.
The company has attributed its inability to meet the filing deadline to the fact that it is currently undergoing a thorough review of its accounting policies, procedures, and internal control over financial reporting. Silvergate further revealed that it had identified certain errors in its financial statements which it is now in the process of correcting.
The company also noted that it has been in contact with the Securities and Exchange Commission (SEC) regarding the delay in filing its annual report. Silvergate has stated that it is working diligently to complete its review and to address any issues identified by the SEC.
Silvergate is the latest crypto-related company to face regulatory issues. Last year, the SEC charged Ripple Labs with conducting an unregistered securities offering. The company is currently fighting the charges and has denied any wrongdoing.
The news of Silvergate’s delay in filing its annual report has sent shockwaves throughout the crypto community, as investors are now concerned about the company’s ability to remain a going concern. Silvergate has stated that it is working to complete its review and to address any issues identified by the SEC.
The delay in filing its annual report has also raised questions about the company’s ability to remain competitive in the crypto-lending market. Silvergate’s competitors have continued to grow and expand their offerings, while Silvergate has fallen behind.
The company has stated that it is taking steps to ensure that it remains competitive in the market and that it is committed to providing its customers with the best possible services and products. Silvergate has also stated that it is working to improve its internal processes and procedures to ensure that it is able to meet the filing deadline in the future.
Overall, the news of Silvergate’s delay in filing its annual report has caused concern among investors and crypto enthusiasts alike. The company has stated that it is taking steps to address the issues that have caused the delay, and that it is committed to providing its customers with the best possible services and products. It remains to be seen how the company will fare in the future, but for now, investors and crypto enthusiasts alike are keeping a close eye on Silvergate’s progress.
