As crypto firms like Gemini, Coinbase, and Crypto.com halt Silvergate transactions, Microstrategy as well as the issuer of USDT stablecoin, Tether has denied exposure as concerns regarding the Silvergate financial crisis grow in the crypto community.

Silvergate Capital Corp is a US financial institution with a good relationship with crypto firms, it has been serving as a gateway between TradFi and digital currencies over time, however, over the weekend, its value continues to plunge on New York Stock Exchange, leading to many crypto-related firms stating their positions on whether or not they have notable exposure to the troubled financial institution.

Since its Wednesday response to the US financial watchdog that it could not file annual earnings as expected, even though there was an extension to mid-March, Silvergate market valuation has dropped over 60%. According to the financial institution, “certain regulatory and other inquiries and investigations” in the group are why it could not meet up as expected.

Considerable financial losses over the past financial year could lead to the company being “less than well-capitalised”, admitting that these losses may impact its ability to operate “as a going concern” in the year ahead.

In a Tweet by the business intelligence company MicroStrategy, the company disclosed that its BTC holdings worth a little above $2.8 billion are not held in Silvergate, it further clarified that it has no other financial ties with Silvergate.

MicroStrategy further disclosed that it has a loan from the troubled financial institution, however, the business intelligence company said that it doesn’t have to pay the loan until the first quarter of 2025, therefore, any case of bankruptcy of Silvergate will affect the loan repayment.

Furthermore, Tether CTO, Paolo Ardoino noted in a recent tweet that Tether has no exposure to Silvergate, however other crypto giants like Circle, Coinbase, Paxos and others have slammed the brakes on Silvergate transactions.

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