: Silvergate downgraded to underperform at Wedbush on prospects for liquidation after its shuts down its exchange network
Silvergate Capital Corp. SI stock fell 9.7% in premarket trades Monday after the company announced it’s shutting down its crypto currency payments network called the Silvergate Exchange Network (SEN), just days after the company said it has doubts about its ability to continue as a viable business. Wedbush on Monday downgraded Silvergate to underperform from neutral and cut its price target to $4 from $9 a share. “We believe a receivership/liquidation scenario is a distinct possibility,” Wedbush said. The liquidation value of the company is about $5 a share. Silvergate posted a statement late Friday on its website that it reached a risk-based decision to shut down its SEN. Wedbush said the business unit was formerly the “crown jewel” of the Silvergate business. Silvergate’s clients such as Coinbase Global COIN said they would not accept payments processed by the company.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.