Crypto stocks fall as Silvergate crisis deepens
Shares of cryptocurrency-related companies fell in premarket trading on Monday after Silvergate Capital Corp (SI.N) pulled the plug on its crypto payments network, following its doubts about keeping its business viable.
The digital assets-focused bank said late on Friday that effective immediately it had made a “risk-based decision” to discontinue the Silvergate Exchange Network (SEN).
Shares of the La Jolla, California-based bank were down more than 4% in premarket trading, while crypto lending peer Signature Bank (SBNY.O) fell 3%. Crypto exchange Coinbase Global (COIN.O) and BTC mining machine maker Ebang International were both down about 1% each.
“The crypto market reacted to the negative news from Silvergate Bank, with both Bitcoin and Ethereum down ~4.8% for the week,” analysts at brokerage Bernstein said in an industry note.
A slew of crypto heavyweights including Coinbase Global and Galaxy Digital have dropped Silvergate as their banking partner after the lender’s latest filing raised questions about its ability to continue as a going concern.
This report’s information was first seen on REUTERS; to read more, click this link.
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