Silvergate Downgrades Pile Up as Firm Shutters Payments Network
- Compass Point and Webush both downgrade stock to sell
- Analysts have flipped on the crypto-friendly bank since 2022
Silvergate headquarters in La Jolla, California.
Photographer: Ariana Drehsler/BloombergThis article is for subscribers only.
Wall Street analysts are souring en masse on Silvergate Capital Corp. as the bank’s decision to shut its cryptocurrency-focused payments network adds to mounting concerns about the state of its operations.
In the span of less than a week, three analysts have downgraded the stock to a sell-equivalent rating, with Compass Point Research & Trading and Wedbush Securities becoming the latest to do so on Monday. Of the 11 analysts covering the bank, five have sell ratings, three have holds, while the remaining three have removed their ratings entirely. At its peak last year, the stock boasted 11 buy ratings.