Silvergate Capital said on Wednesday that it will wind down operations and liquidate its bank, which served the crypto industry.
Highlights
- Silvergate Capital said on Wednesday that it’s winding down operations and liquidating its bank.
- The stock plunged more than 36% in after-hours trading.
- All deposits will be fully repaid, according to a liquidation plan shared on Wednesday.
- The liquidation comes less than a week after Silvergate discontinued its payments platform known as the Silvergate Exchange Network, or SEN, which was considered to be one of its core offerings.
- Silvergate has been struggling for months, including laying off 40% of its workforce and selling $5.2 billion dollars of debt securities to cover the withdrawals.
- The bank has just over $11 billion in assets, compared with over $114 billion at Signature.
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Erik Finman, then 12 years old, seeing someone with a Bitcoin shirt, inquired more about Bitcoin and invested the $1,000 his grandmother had given him, becoming a millionaire at a young age