2022 had been a tough year for the cryptocurrency industry due to the FTX-related fiasco, and 2023 appears to be no different. One of the crypto world’s top banks, Silvergate Capital (NYSE:SI), plans to wind down operations and voluntarily liquidate the bank. Following the news, SI stock nosedived about 44% on Wednesday’s extended trading session.
![](https://blog.tipranks.com/wp-content/uploads/2023/03/09.03_1-1024x359.png)
The company aims to fully repay the deposit amounts. Also, it is looking for the best way to resolve claims and maintain its assets’ residual value, which includes its proprietary technology and tax assets.
Last Friday, the company discontinued its Silvergate Exchange Network (SEN). The SEN platform allowed institutional investors to transfer dollars in and out of crypto-trading platforms.
Silvergate’s downfall began last year following the collapse of FTX. About $1 billion of the bank’s deposits were accounted for by FTX and other companies controlled by its founder, Sam Bankman-Fried. Also, other customers rushed to the bank to pull out deposits. As a result, total deposits fell 52% sequentially to $6.3 billion in the fourth quarter of 2022.
In order to meet the withdrawals, Silvergate had to sell off its debt and assets at a loss, which impacted its capital levels considerably.
What are the Projections for Silvergate Stock?
The Wall Street community is bearish on SI stock due to the recent developments at the crypto bank. Silvergate has a Moderate Sell consensus rating based on one Buy, five Holds, and five Sells. The average price target of $11.50 implies 134.2% upside potential from the current level.
.