Cryptocurrency exchange Coinbase Global Inc said on Thursday it was no longer accepting or initiating payments to or from Silvergate Capital Corp after the lender warned it was evaluating its ability to operate as a going concern.
Shares of Silvergate extended their losses after the announcement from Coinbase. They were last down more than 45% at $7.40 in premarket trading.
Coinbase's shares were down nearly 6% at $61.
The exchange also said it had minimal exposure to Silvergate.
The decision comes a day after Silvergate delayed its annual report and said it had sold additional debt securities to repay debts this year and that further losses could mean the bank is "less than well capitalized".
It was also evaluating the impact of these events on "its ability to continue as a going concern," it said.
La Jolla, California-based Silvergate reported a $1 billion loss for the fourth quarter as investors raced to withdraw deposits in the wake of crypto exchange FTX's bankruptcy.
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