Fears have been heightened over the future of another United States bank this week after Silicon Valley Bank (SVB) announced a significant sale of assets and stocks aimed at raising additional capital.
However, some investors may be concerned that not all is well at the tech startup and VC-focused bank, particularly given the closure of crypto bank Silvergate just a day earlier. Shares in Silicon Valley Bank collapsed over 60%, wiping some $80 billion in value from the bank’s shares.
SVB is one of the top 20 largest banks in the United States and provides banking services to the likes of crypto-friendly venture firms Sequoia and Andreessen Horowitz (a16z).
In a March 8 financial update, it disclosed it sold $21 billion worth of its securities holdings for a $1.8 billion loss to shore up its balance sheet.
It also raised $500 million from venture firm General Atlantic and is seeking to raise another $1.75 billion in sales of its shares, for a total of $2.25 billion.
It said the sale was made as it expects “continued higher interest rates, pressured public and private markets, and…