Advertisement
AD

Main navigation

Breaking: Crypto-Friendly Silicon Valley Bank In Talks to Sell Itself

Advertisement
Fri, 10/03/2023 - 14:55
Breaking: Crypto-Friendly Silicon Valley Bank In Talks to Sell Itself
Cover image via www.freepik.com
Read U.TODAY on
Google News

SVB Financial, the parent company of Silicon Valley Bank, is reportedly in talks to sell itself.

Advertisement

CNBC's David Faber broke the news on Thursday, stating that SVB Financial has hired advisors to seek a sale, and that several large financial institutions have shown interest in the bank.

This news comes amid concerns about the bank's financial stability, as its stock dropped by over 60% on Thursday after it revealed selling assets and stock to raise funds. The warning comes as crypto start-ups scramble for viable banking options.

SVB Financial is known for its support of crypto-friendly venture capital firms, and its downfall would represent another blow to the crypto-friendly banking sector.

Earlier this week, Silvergate Capital announced it would wind down its bank division after selling off assets at a huge loss to cover over $8 billion in withdrawals amid the broader crypto market meltdown.

Related
SVB Financial has not yet commented on the potential sale, but the news has already had an impact on its stock, which remains halted. The company is expected to release more information soon.

However, Faber indicates that Silicon Valley Bank's deposit outflows are outpacing the sale process, as the bank struggles to raise capital amid the current market turmoil. This is a concerning development, as deposit outflows can move very quickly, leaving the bank in a vulnerable position. Despite hiring advisors to seek a sale, the process may not be moving fast enough to address the bank's liquidity concerns.

In addition to Silicon Valley Bank, other banks have also been affected by the recent market volatility. First Republic Bank is down 30% and has been halted for volatility, while Signature Bank is down 20%. The declines reflect broader concerns around the go-to banks of the tech industry. 

CNBC's Jim Cramer also weighed in on the news, stating that it is tough for the market to handle banks that use Bitcoin and "pre-IPO" stocks as collateral. However, he noted that there are only two large banks that fit this description, Silvergate Capital and Silicon Valley Bank.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD