Why Coinbase Stock Dropped Today
Shares of Coinbase Global (NASDAQ: COIN) fell as much as 11.1% in trading on Thursday after crypto bank Silvergate (NYSE: SI) said it is delaying its 10-K filing and gave a "going concern" warning. Silvergate stock crashed while Coinbase shares recovered late in the day and closed down just 1.5%.
Silvergate has been under pressure for months because of losses on its crypto portfolio and a sharp drop in deposits. But the company continued to operate its core payments business fairly normally.
That changed on Thursday when Coinbase, Paxos, and Galaxy Digital were among the companies who said they won't accept transfers from Silvergate's network. To be clear, this doesn't mean there's a risk to a company like Coinbase if Silvergate goes bankrupt. But that didn't matter to investors early this morning.
Source Fool.com
