Crypto stocks slide after Silvergate decides to shut down

economictimes.indiatimes.com:

Silvergate Capital Corp disclosed plans to wind down operations and voluntarily liquidate, as the aftermath of FTX's implosion last year reverberates through the industry. Analysts said a complete closure of the crypto lender could take one or two years depending on how quickly outstanding loans are repaid and assets are disposed of. Silvergate's latest move adds to a list of high-profile collapses among crypto market players since last year. The company's shares plunged 37% to $3.11, a day after hitting a record low and have lost 64% since March 1 when the company flagged a going concern risk.

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«We believe this decision was made, at least in part, to help mitigate Silvergate Bank's legal liability related to FTX's bankruptcy,» Wedbush analysts wrote in a note.Silvergate did not immediately respond to a request for comment on the analysts' view. Meanwhile, shorting in the shares of Silvergate has proved profitable for bearish investors as its shares have lost 95% of their value in the past 12 months and 72% so far this year. Nearly 85% of the company's free float is under short position with short sellers making $241 million in year-to-date mark-to-market profit, according to analytics firm S3 Partners. Shares of peer Signature Bank, which has been pivoting away from crypto since late last year, fell 8%. In its second mid-quarter update this month, Signature said digital assets accounted for just