Silvergate stock plunges 31% after future is put in doubt by delayed filing
Silvergate Bank’s announcement that it needs an additional two weeks to complete its 2022 fiscal year 10-K report has caused its stock price to drop by over 30% after hours.
It’s delay is due to the sale of additional debt securities in January and February, as well as expected losses in the coming months, which may negatively impact the regulatory capital ratios of the company and its wholly-owned subsidiary.
The company is also evaluating the impact of these events on its ability to continue as a going concern. The bank is currently conducting additional procedures and providing documentation to complete a series of audits requested by its independent registered public accounting firm.
In other news, the Reserve Bank of Australia (RBA) and Digital Finance CRC (DFCRC) have announced a joint research project to explore the potential use cases and economic benefits of a Central Bank Digital Currency (CBDC) in Australia.
RBA will launch a “live pilot” in the coming months with selected financial industry participants, including banks and payment providers such as Mastercard. The pilot will demonstrate potential use cases of the CBDC, including offline payments, tax automation, and a CBDC for “trusted Web3 commerce.”
It’s research project and pilot aim to contribute to hands-on learning by the industry and add to policymakers’ understanding of how a CBDC could benefit the Australian financial system and economy.
