Stock of Silvergate Bank lost 31% after the bank said it would delay filing its annual 10-K report. A public business’s annual report is important as it provides insights into the health of the business and important financial metrics. Every year, investors look forward to this report to evaluate their investment decisions in a company. And if a public company is delaying its filing, then something shady might be going on, or the business might be in bankruptcy.
Silvergate’s annual report submission delay
Silvergate’s annual reporting lag is around 2 weeks. The bank attributed the delay to selling additional debt securities in January and February. The bank also informed us that they expect losses in the coming months. This had a huge impact on the market as the sentiment turned negative and the share price fell.
The bank stated that the loss may affect the capital ratio, and the bank may be less than the good capital. They are currently evaluating how the subsequent events described above will affect their ability to operate within the twelve months following the issuance of the financial statements. In addition, the impact of these events is being evaluated.
Silvergate Bank is working to adjust its business plans and strategies and address regulatory changes coming its way. The cryptocurrency bank also disclosed that it is conducting additional procedures and submitting necessary documents to complete the audit suite at the request of an independent registered public accounting firm.
About Silvergate Bank
Silvergate Bank is a publicly traded bank founded in 1988 and headquartered in La Jolla, California, USA. The bank primarily serves the digital currency industry, providing financial infrastructure solutions to businesses involved in cryptocurrency and blockchain technology.
They offer a variety of services including loans, deposits and payment processing. The bank has earned a reputation as one of the most popular banks in the United States, with many of its clients being cryptocurrency exchanges and other blockchain-related businesses.
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