• Silvergate Capital shares have tumbled 29% in after-hours trading on Wednesday as the crypto-friendly lender raised a „going concern“ issue in a regulatory filing.
• Funds managed by State Street and BlackRock have added to stakes in recent weeks, while Ken Griffin’s Citadel Securities last week disclosed 5.5% of „market making positions“ in the shares.
• The impact of losses and regulatory issues call into question Silvergate’s ability to continue as a “going concern”.

Silvergate Capital Shares Tumble After Regulatory Filing

Silvergate Capital (SI) shares have tumbled 29% in after-hours trading on Wednesday after the company raised a “going concern” issue in a regulatory filing due to losses stemming from the FTX collapse in November and regulatory inquiries on multiple fronts.

Stakes Held By TradFi Heavy Hitters

State Street, BlackRock, and Ken Griffin’s Citadel Securities are among the largest holders of Silvergate stock, with all three having added to their stakes recently. Last week, Citadel disclosed 5.5% of its “market making positions” held within its shares.

Going Concern Uncertainties

The losses and regulatory issues associated with Silvergate raise questions about its ability to continue as a “going concern” going forward. As such, the company has delayed filing its annual report until further notice.

Implications for TradFi Players

It is uncertain whether or not the TradFi players have maintained their investments at the same levels given recent volatility in Silvergate’s stock prices; no recent data is available that suggest otherwise either way.

Conclusion

Despite uncertainty surrounding Silvergate’s future prospects, it appears that TradFi heavy hitters remain invested in its stock – at least up until now. Whether they will maintain these investments moving forward remains to be seen however, given market volatility and ongoing regulatory investigations associated with the company’s activities.