Digital currency Exchange Coinbase recentlyAnnounceThe relationship between it and the company's California-based login password-friendly bank, Silvergate Bank, is over. The exchange indicates that payments to or from the bank will no longer be accepted or made.
Coinbase mentioned that the company was "extremely cautious" because of recent developments caused by the delay in the publication of its annual report by its former partner Silvergate. The exchange also stressed that any customer assets would remain "safe, available and available". Coinbase added:
Coinbase will facilitate cash payments from institutional customers and our other banking partners and has taken swift action to help ensure that customers are not affected by this shift.
In addition, Coinbase shows that after the end of the cooperative relationship with Silvergate, its legal provisions for withdrawal procedures are not easy to change. In addition, Coinbase has selected Signature Bank "effective immediately" and asked customers to upgrade their Coinbase withdrawals to the company's New York-based Commercial Services Bank.
Adverse reactions to Coinbase and Silvergate stocks
Coinbase is the second largest digital currency exchange in the spot market, with more than 108 million users, and its share price followed the decline after the news. Coinbase's shares fell more than 6 per cent when the news was announced.
After hitting the $67.40 mark at the end of February, the company's shares stopped rising on the Nasdaq stock market, trading at $58, falling more than 9% for seven trading days. At press time, Coin is valued at $15.3 billion.
On the other hand, Silvergate shares tumbled 29% in early trading after delaying the release of the annual report and causing investor concern.
Silvergate, whose stock symbol is SI, closed Wednesday at $13.50. it is now trading at $7.75 on Nasdaq, down 80% from a strong first-quarter performance of $22 on Feb. 16.
Previously, Silvergate reported a loss of $1 billion in the fourth quarter of 2022 as investors withdrew during the run-up to FTX.
The company said in a statementArchivingBank told the Securities and Exchange Commission that it would not be able to file its annual report and further extended the deadline for filing its annual report to March 16. The bank also mentioned in its filing with the Securities and Exchange Commission that it had sold additional debt to repay the 2023 loan. The company added:
The company is assessing this latter event and its impact on its ability to operate again 12 months after the financial report is released. The company is now re-evaluating its business and strategy as a result of the business process regulatory challenges it faces at this stage.
SilverGate is now implementing other procedures while providing its accounting firm regulation documents and completing the audit process. In addition, Silvergate expects proactive changes compared with the fourth quarter report to ease investor anxiety.
Unplahs lecture photos, TradingView.com data charts.
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