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Silvergate Capital’s Ratings Cut by Moody’s Amid Crypto Meltdown

Silvergate headquarters in La Jolla, California.

Silvergate headquarters in La Jolla, California.

Photographer: Ariana Drehsler/Bloomberg

Moody’s Investors Service cut its ratings on Silvergate Capital Corp. and its bank subsidiary Silvergate Bank, citing concern about its viability amid the crypto market’s turmoil and a crackdown by federal regulators.

Silvergate Capital’s long-term issuer rating fell to Ca from B3, with the potential for another cut, Moody’s said in a statement. It cited the March 1 announcement that Silvergate is evaluating its ability to continue as a going concern and that additional losses will hurt regulatory capital ratios, which may leave the company and the bank less than well-capitalized.