The affectations in the crypto world have been occurring to a greater extent, since Silvergate Capital, an American bank specializing in services for cryptocurrency businesses, collapsed on the stock market on Thursday after admitting that it is evaluating its ability to continue operating as a result of the impact of problems in the sector.
(Also read: The arduous task of cryptocurrencies in the financial sector).
The titles of the entity fell around 57.7% on Wall Street, between Wednesday and Friday, after publishing a letter addressed to the stock market regulator in which Silvergate said that it will not be able to submit its annual report on time and in which it warns of the difficulties it is experiencing.
As an effect, the digital currency has already been showing decreases in its value, due to the announcement of the bank. precisely yesterday andThe price of Bitcoin (BTC) fell 4.92% to $22,311.
Through a statement, the bank notified that it cannot file with the Securities and Exchange Commission (SEC) your annual report on form 10-K for the tax year ended December 31, 2022because the licensee requires additional time to perform analysis, record journal entries related to subsequent events, and complete management’s assessment of internal controls over financial reporting.
The company indicated that there are important factors that could cause actual results to differ from those indicated in forward-looking statements, such as the viability of the company’s digital asset-focused business following “substantial” volatility in lindustry of these assets during the fourth quarter of 2022.
(See: Will the fear of risk, in 2023, end with cryptocurrencies?).
Additionally, they added that high-profile bankruptcies have been filed, disrupting investor confidence in cryptocurrencies, leading to a “rapid” escalation in oversight of the digital asset industry, as well as the risks and uncertainty surrounding possible liability and restrictions on the company’s business.
Silvergate estimates that a net loss attributable to common stockholders of the company for US$948.7 million compared to net income available to common stockholders of $75.5 million.
On the other hand, it is indicated that the company has sold additional debt securities in January and February 2023 and expects to register plus losses related to non-temporary impairment in the securities portfolio.
(Also read: In San Victorino they will receive payments with bitcoin and cryptocurrencies).
“These additional losses will have a negative impact on the regulatory capital ratios of the Company and its wholly owned subsidiary, Silvergate Bank, and could result in the Company and Bank being less than well capitalized.”, they stated.
They added that the impact these subsequent events have on their ability to continue is being assessed. as a going concern during the twelve months following the issuance of its financial statements.
“The company is in the process of reassessing its businesses and strategies in light of the commercial and regulatory challenges it currently faces,” they state in the document.
It should be noted that the company assured that it believes not be able to turn in Form 10-K before the extension date of March 16, 2023.
(See: Superfinanciera has a draft of cryptocurrency regulations ready).
The American bank has been affected, among other things, by the collapse of the FTX cryptocurrency platform and is being investigated by the American authorities for its business with that firm and its investment armAlameda Research.
FTX and Alameda are accused of fraud and several of those responsible have pleaded guilty, while the one who was the most responsible, Sam Bankman-Fried, is on probation pending trial.
The entity is one of the few in the United States specialized primarily in the crypto business. Coinbase, one of the largest platforms in the sector, announced that out of an abundance of caution it has stopped accepting or initiating payments to and from Silvergate.
Juan Pablo Zuluaga, founder of Mis Propias Finanzas, stated that “Whenever there is a negative announcement from any major player in the industry, asset prices are affected. However, Bitcoin continues to work for what it was created for. A network for transactions between peers without the need for an intermediary”.
PORTFOLIO AND EFE
