- The company that owned the now-closed Silvergate Bank revealed substantial reductions in its workforce and the removal of its securities from listing in a filing submitted to the Securities and Exchange Commission (SEC).
Silvergate Capital, the parent company of the bankrupt Silvergate Bank, has announced that it will be removed from the New York Stock Exchange (NYSE) listings, and it will also be letting go of 230 employees.
In a filing made on May 11 to the U.S. Securities and Exchange Commission (SEC), Silvergate Capital stated that starting from May 12, 230 employees will be “separated” from the company. Additionally, trading of its stock has been suspended by the New York Stock Exchange (NYSE), and the process of delisting will begin in the near future.
A year-to-date chart of Silvergate Capital’s share price shows a nearly 93% price drop since the start of 2023. Source: cointelegraph.
Following the reduction in staff, around 80 officers and employees will remain to oversee the ongoing liquidation process of Silvergate Bank.
Further reductions in headcount are anticipated as the filing indicates that at least three additional cuts are scheduled for June 30, August 30, and November 30, with the possibility of additional cuts at a later date.
Silvergate projected that the costs associated with the staff reductions, including severance, retention and bonus payments, as well as job placement programs, would amount to approximately $13.6 million.
No more financial updates
In another filing submitted to the SEC on May 11, Silvergate stated that it is currently unable to meet the legal requirements for filing financial reports for the 2022 fiscal year and the first quarter of 2023. Furthermore, the company anticipates that it will be unable to file similar reports in the future.
The company attributed its inability to file the required financial reports to ongoing challenges arising from regulatory inquiries, investigations, legal liabilities, and the liquidation process of the bank.
Silvergate has announced that it will no longer be filing annual reports (10-Ks), quarterly reports (10-Qs), and proxy statements. The decision is primarily attributed to ongoing regulatory inquiries, investigations, and other developments related to the company and its bank. (Ref. https://t.co/1EpkRKAixt pic.twitter.com/i1D6S1daGP
— Bank Reg Blog (@bank_reg) May 11, 2023 )
Silvergate has concluded that it is in the best interests of stakeholders to reduce costs and expenses in order to safeguard the company’s value. As part of the cost-cutting measures, some of the staff to be let go include individuals who play a crucial role in preparing the financial filings mentioned earlier.
Silvergate Capital initially announced on March 8 that it would proceed with the voluntary liquidation of Silvergate Bank.
Just days before the announcement, several cryptocurrency companies, including Gemini, Coinbase, Galaxy Digital, and BitStamp, ended their partnerships with Silvergate Bank ( severed ties ). This action was taken as the bank was being investigated by the Justice Department investigation regarding its alleged connections to the collapse of FTX.