Silvergate Capital (New York Stock Exchange: YES) recently revealed that it will be discontinuing its crypto payment platform, Silvergate Exchange Network (SEN). The decision comes after the crypto bank raised doubts about its ability to continue as a constant concern.
โEffective immediately, Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network. All other deposit-related services remain operational,โ the company stated.
The SEN platform enables Silvergate cryptocurrency and institutional investor clients to transfer dollars throughout the year between their own accounts and the accounts of other Silvergate clients.
Silvergate witnessed a major setback last week. The stock has tumbled about 63% in the past two trading days after he explained that his annual report filing would be delayed while he assessed the viability of it.
One of the reasons for the delay is a loss suffered on the sale of additional debt securities earlier this year, which affected the bank's capital levels. Additionally, Silvergate is under investigation by banking regulators and the US Department of Justice.
Following this news, several crypto companies, including Coinbase Global (CURRENCY), Galaxy Digital and Paxos Trust Co., stopped accepting or initiating payments through Silvergate.
Is SI Stock a purchase?
Following the collapse of the FTX exchange less than four months ago, the cryptocurrency world faces the risk of a major company recession. Wall Street is currently on the sidelines of Silvergate stock.
stocks YES it has a hold consensus rating based on one buy, seven hold and three sell recommendations. The $12.40 average price target implies 114.9% upside potential.
