Crypto-friendly bank Silvergate has delayed filing its 10-K, an annual report on the financial health of the company. The news has sent its stock price down 31%.
Silvergate Bank announced it would delay filing its annual 10-K filing, which sent its share price up more than 30% after hours.
A 10-K report is a document required by the Securities and Exchange Commission that provides a detailed description of a company’s business and financial condition. The crypto bank said it will need two more weeks to complete the report for the 2022 budget.
Silvergate explained in its late filing that it sold more debt securities in January and February and expects to post further losses in the coming months. The company said that “these further losses will affect the capital adequacy of the company and its subsidiary, Silvergate Bank (the “Bank”), and may cause the company and the bank to become financially insolvent, ” said the company during his submission.
“Furthermore, the company is assessing the impact of the following events on its ability to continue as a going concern for the 12 months following the release of its financial statements,” said Silvergate, adding:
“The company is currently re-evaluating its business and strategy in light of the business and regulatory challenges it is currently facing.”
The crypto bank added that it conducts other processes and issuing documents, such as the company that registers and registers its requirements, to complete the audit process. Silvergate explained that many factors could affect the company’s financial health in the near term.
These include major market fluctuations in the fourth quarter of 2022, many assets with high-interest rates in 2022 that undermined the confidence of investors in cryptocurrencies, and strict supervision of banks that provide infrastructure services digital. The company added that customer retention can be a problem, in addition to any costs or business restrictions that can be brought about by litigation.
Cointelegraph has contacted Silvergate for comment but did not receive a response at the time of going to press.
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