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The
crypto lender's shares slumped 45% to $2.86, a day after hitting
a record low and losing 64% since the company flagged a going
concern risk on March 1. Shares of Signature Bank, which uses
blockchain technology, fell 9%.
Crypto exchange Coinbase Global, which severed ties with the
bank last week, dropped 3%. Miners Riot Blockchain and Marathon
Digital slid 3.5% and 4%, respectively.
Bitcoin steadied near at $21,647, its lowest since mid-February,
with analysts and investors saying the market impact of the news
was limited as it had been widely expected.
Silvergate's announcement also adds to a list of high-profile
collapses of crypto market players since last year.
With Silvergate shares down 95% over the past 12 months, and 72%
so far this year, shorting has been a profitable trade for
bearish investors.
Nearly 85% of the company's free float is under short position
with short sellers making $241 million in year-to-date
mark-to-market profits, an 81.9% increase on an average short
interest of $294 million, analytics firm S3 Partners said on
Monday.
(Reporting by Medha Singh in Bengaluru; Editing by Sriraj
Kalluvila)
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