Silvergate shares plummet 46%, as Coinbase stops payment transactions with the crypto-friendly lender

Silvergate Capital Corp. SI, -45.90% shares plunged more than 46% in premarket trading Thursday, as crypto exchange Coinbase COIN, -9.83% said it would stop sending payments to, or receiving payments from the lender. Coinbase made the move “in light of recent developments & out of an abundance of caution,” and it will facilitate institutional client cash transactions with its other banking partners, the company tweeted Thursday. Silvergate said in a regulatory filing Wednesday that it would not be filing its audited 2022 annual report on time. A series of events have left it at risk of “being less than well-capitalized,” and the company is evaluating those events’ impact on its ability to continue as a going concern, according to the company.