Silvergate is laying off 200 workers in the face of challenges in the crypto industry. It abandoned projects and reported Q4 2022 losses.
Shares of reputable cryptocurrency-focused financial institution Silvergate Capital plunged Thursday after the firm announced several changes, including a significant staff cut.
The cryptocurrency bank will cut 40% of its workforce and abandon some projects, it said in a filing with the U.S. Securities and Exchange Commission (SEC). The layoffs will affect about 200 of Silvergate's current workforce, according to The Block and other media outlets that covered the story.
In the filing, the company said it had increased headcount "at an accelerated pace" last year, but now needed to adapt to the "economic realities" facing the industry. It added that the reduced headcount will help the company manage expenses in a "more challenging macro environment," according to reports.
In addition to the job cuts, Silvergate is also suspending some projects. The bank halted plans to launch its own cryptocurrency and cancelled USD$196 million related to the acquisition of Meta's Diem Association technology and assets (the tech giant's failed cryptocurrency project).
Early last year, Meta (formerly Facebook) abandoned plans for its Diem digital currency after years of failed efforts. Silvergate, its former partner, disclosed that it would acquire the intellectual property and other assets of the Diem Payment network.