• Silvergate Capital has announced it will be delisting from the New York Stock Exchange and that 230 of its staff will be let go.
• The firm cited “challenges” due to “continuous developments relating to regulatory and other inquiries and investigations that are pending,” in an SEC filing.
• Silvergate determined it’s in the “best interests” of stakeholders to “minimize costs and expenses” to preserve value.

Silvergate Begins NYSE Delisting Process

The parent company of the defunct Silvergate Bank has disclosed significant staff cuts and the delisting of its securities on the New York Stock Exchange (NYSE). Starting May 12th, 230 employees will be “separated”.

Significant Price Drop

A year-to-date chart of Silvergate Capital’s share price shows a nearly 93% price drop since the start of 2023. This is likely due to “challenges” stemming from ongoing regulatory inquiries and investigations.

Staff Cuts

After these initial layoffs, approximately 80 officers and employees will remain behind for the liquidation process – with more headcount cuts slated for June 30th, August 30th, November 30th or later. Silvergate estimated drawdown costs for severance, retention bonuses etc., at around $13.6 million USD.

No More Financial Updates

In a separate SEC filing, Silvergate stated they were unable to file legally required financial reports for 2022 fiscal year and Q1 2023 – nor did they expect to be able in the future – citing liabilities from legal action/liquidation process as one of their challenges.

Best Interests Of Stakeholders

Silvergate determined it was in their stakeholders’ best interests to minimize costs & expenses in order to preserve value; this included cutting those who were critical in preparing financial filings such as 10-Ks & 10-Qs etc.