Shares of the crypto-focused bank have been reeling in part due to links with failed crypto exchange FTX and sister company Alameda Research.
Shares of Silvergate Capital (NYSE: SI) took on a dark patina on Monday. The crypto-friendly bank's stock was down by 7.5% as of 10:20 a.m. ET after a well-respected analyst firm downgraded Silvergate to the equivalent of a sell rating. In a Monday letter to investors, Morgan Stanley analyst Manan Gosalia lowered Silvergate's recommendation grade from equal weight to underweight, citing stress to the financial ecosystem around the crypto industry after November's FTX meltdown.
The fallout from the FTX cryptocurrency scandal continues to impact a wide range of industry players.