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Silvergate extends decline to 47% as Coinbase says it won't accept or initiate payments

Published 03/02/2023, 09:48 AM
Updated 03/02/2023, 10:03 AM
© Reuters Silvergate (SI) extends decline to 47% as Coinbase (COIN) says it won't accept or initiate payments
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By Senad Karaahmetovic

Coinbase (NASDAQ:COIN) announced today that it will stop accepting or initiating payments to or from Silvergate Capital (NYSE:SI). The announcement comes after Silvergate said it is studying its status as a going concern.

“Coinbase will be facilitating institutional client cash transactions with our other banking partners and have taken proactive action to help ensure that clients experience no impact from this change,” the company said in a statement.

The crypto exchange also said it had minimal exposure to Silvergate.

Following the announcement, Silvergate shares extended the decline. The stock trades 46% lower on Thursday while Coinbase trades about 7% in the red.

Silvergate delayed its annual report and warned that experiencing further losses could mean it becomes “less than well capitalized.”

Bloomberg also reported that Mike Novogratz’s Galaxy Digital halted transfers to Silvergate.

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