Shares of digital coins and tokens are falling after cryptocurrency bank Silvergate Capital (SI) announced that it is shutting down its payments network amid a deepening liquidity crisis.
Over the weekend, the cryptocurrency lender announced that it is discontinuing its Silvergate Exchange Network effective immediately.
Cryptocurrencies are reacting negatively to that news with the price of Bitcoin (BTC) slumping to $22,400 U.S. and Ethereum’s (ETH) price falling nearly 5% over the weekend to $1,565 U.S.
Several cryptocurrency exchanges, including Coinbase Global (COIN), have dropped Silvergate as their banking partner after the lender's latest financial results raised doubts about its ability to continue operations.
Silvergate Capital reported a net loss of $1 billion U.S. for the fourth and final quarter of 2022.
Shares in Silvergate hit a record low of $4.86 U.S. per share last Friday (March 4). The stock has now declined 98% from an all-time high reached in November 2021.
The company has been struggling in the wake of the $8 billion U.S. collapse of crypto exchange, FTX last November.
In recent days, Silvergate Capital executives have said they are unsure if the cryptocurrency bank can continue as a going concern.
Silvergate’s stock is down a further 8% in premarket trading today (March 6).
