Silvergate, a crypto-focused bank, has seen its share prices plunge by 60% in just two days. This dramatic drop in stock prices has been attributed to the recent disassociation of several major crypto companies from the bank.
The disassociation began when Silvergate announced that it would no longer be providing banking services to BitMEX, a popular cryptocurrency exchange. This announcement was followed by other major crypto companies, including Bitfinex, Kraken, and ShapeShift, all of which announced that they would be leaving Silvergate.
The sudden departure of these companies has caused a significant drop in Silvergate’s share prices. The company’s stock had been trading at around $20 per share prior to the news, but has since dropped to just $8. This is a 60% decrease in just two days, and is a major blow to the company’s stock price.
The reason for the disassociation is unclear, but it is likely due to the increasing scrutiny of crypto companies by regulators. Silvergate’s decision to no longer provide banking services to BitMEX may have been an attempt to distance itself from the exchange and avoid any potential legal issues.
The sudden drop in Silvergate’s share prices has caused concern among investors, who are now questioning the company’s future prospects. It remains to be seen whether Silvergate can recover from this setback and regain investor confidence.
In the meantime, investors should be wary of any further developments in the crypto industry that could affect Silvergate’s stock price. As the regulatory environment continues to evolve, it is important for investors to stay informed and make sure they are investing in companies that are compliant with all applicable laws and regulations.
Source: Plato Data Intelligence: PlatoAiStream