NYSE Suspends Silvergate, 230 Jobs Will Be Cut

Key points:

• Silvergate Capital shares are suspended from trading on the New York Stock Exchange (NYSE).
• Failed bank declares shut down after being hit by the crypto industry downturn.
• About 230 job cuts will take effect from today.

Silvergate Capital shares are suspended from trading on the New York Stock Exchange (NYSE) on Wednesday, a large number of staffing will be cut today.

On Thursday, the New York Stock Exchange announced delisting proceedings for Silvergate stock, citing delayed financial reports.

The failed bank said in March that it would be shutting down after being hit by the downturn in the crypto industry, which is also cutting around 230 jobs, effective today.

Not stopping there, at least three more layoffs are expected, on June 30, August 30, and November 30 “or later,” the filing states. Silvergate estimates the cost of layoffs will be around $13.6 million with severance, retention and bonus payments, and job referral programs.

Silvergate Bank’s parent company said in a securities filing that the approximately 80 remaining officers and employees at the company would focus on carrying out the bank’s liquidation, preserving the residual value of its assets while handling inquiries and investigations.

On March 9, the day Silvergate Capital said it was shutting down, shares fell 42% to $2.84. According to FactSet, the stock closed Wednesday at $1.25.

In addition, in a separate SEC filing dated May 11, the bank also said it was unable to file the legally required financial statements for the fiscal year 2022 and the first quarter of 2023 and “did not expect to be able” to file any similar reports in the future. It determines that it is in the “best interests” of stakeholders to “minimize costs and expenses” to preserve value. The company added that some of the staff cuts included were “critical” in the preparation of these filings.

On March 8, Silvergate Capital announced for the first time that it would voluntarily liquidate Silvergate Bank.

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