Silvergate Bank, a crypto-friendly bank, has announced that it will delay the filing of its annual 10-K report, sending its stock price down over 30% after hours.

The 10-K report is a document required by the Securities and Exchange Commission that provides a comprehensive overview of a company’s business and financial condition. Silvergate stated that it would need an additional two weeks to complete the report for the 2022 fiscal year.

The bank also revealed that it sold additional debt securities in January and February and expects to record further losses in the coming months. These losses could potentially result in the company and its wholly owned subsidiary, Silvergate Bank, being less than well-capitalized.

Silvergate is currently evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements. The crypto bank is also conducting additional procedures and providing documentation, as requested by its independent registered public accounting firm, to complete a series of audits.

The firm is also considering the potential impact of the substantial market volatility experienced in Q4 2022, several high-profile bankruptcies in 2022, stricter regulatory oversight on banks offering digital asset services, and customer retention.

Adam Cochran, an Ethereum developer, commented on the situation, saying, “I don't think retail investors realize how much market maker money moved around quickly via SEN, and how many crypto exchanges were/are banking with them.”

Cointelegraph reached out to Silvergate for comment but did not receive a response at the time of publication.

Silvergate Bank, a crypto-friendly bank, has announced that it will delay the filing of its annual 10-K report, sending its stock price down over 30% after hours. The 10-K report is a document required by the Securities and Exchange Commission that provides a comprehensive overview of a company’s business and financial condition.

Silvergate stated that it would need an additional two weeks to complete the report for the 2022 fiscal year. The bank also revealed that it sold additional debt securities in January and February and expects to record further losses in the coming months. These losses could potentially result in the company and its wholly owned subsidiary, Silvergate Bank, being less than well-capitalized.

The firm is also considering the potential impact of the substantial market volatility experienced in Q4 2022, several high-profile bankruptcies in 2022, stricter regulatory oversight on banks offering digital asset services, and customer retention.

Silvergate is currently evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements. The crypto bank is also conducting additional procedures and providing documentation, as requested by its independent registered public accounting firm, to complete a series of audits.

Adam Cochran, an Ethereum developer, commented on the situation, saying, “I don't think retail investors realize how much market maker money moved around quickly via SEN, and how many crypto exchanges were/are banking with them.”

The news of Silvergate's delay in filing its 10-K report has caused a significant drop in its stock price and has raised questions about the future of the crypto-friendly bank. Silvergate has yet to comment on the situation, but investors are likely to be watching closely as the bank works to complete its report and evaluate its future.