Silvergate Capital (NYSE:SI) stock is falling hard on Thursday after the crypto bank revealed liquidation plans.
According to a press release from the company, it intends to wind down operations and start the liquidation process. This comes after certain regulatory and industry developments have forced the bank into a challenging position.
With the liquidation plans, Silvergate Capital intends to close down its business in an orderly manner. That includes the full repayment of all deposits. It also seeks to resolve claims and preserve the value of its assets.
In relation to this, the company is closing down its Silvergate Exchange Network for crypto. However, it will continue to offer other deposit-related services as it works through the wind-down process.
In its news release, Silvergate Capital notes it brought on several advisors to help with the liquidation. Among them are Centerview Partners LLC, Cravath, Swaine & Moore LLP, and Strategic Risk Associates.
What This Means For SI Stock
Investors can expect the price of SI stock to continue to fall following this liquidation news. With the company closing down its business, shares of the stock will likely stop trading after it’s done. That means there’s not much sense in investing in the company.
SI stock is down 38% in pre-market trading on Thursday!
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock coverage traders need to know about on Thursday! With that comes what’s moving shares of Biophytis (NASDAQ:BPTS) and Toro (NASDAQ:TORO) stock, as well as this morning’s biggest pre-market stock movers. We’ve got all that ready to go below!
More Thursday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.