Alex Omenye
The shares of crypto-focused companies fell on Thursday in premarket trading after Silvergate Capital Corp disclosed plans to voluntarily liquidate.
This is coming as the effect of FTX’s collapse in 2022 continues to hit the industry.
The crypto lender’s shares crashed to 45% to $2.86, a day after hitting low and losing 64% since March 1.
The shares of Signature Bank which uses blockchain technology, fell by 9%.
Crypto exchange Coinbr Global also dropped by 3%, while Miners Riot Blockchain, and Marathon Digital dropped by 3.5% and 4%, respectively.
However, Bitcoin steadied at $21,647, its lowest since mid-February.
Analysts and investors are saying the market impact of the news was mild.
Silvergate’s announcement adds to a list of high-profile collapses of crypto market players since FTX’s collapse last year.
With the shares of Silvergate down to 95% over the past one year, and 72% so far this year, shorting has been a profitable trade for bearish investors.