It’s not every day banking news is the big story in the startup world, but here we are. Yesterday, formerly crypto-friendly Silvergate Bank announced it would “wind down operations and voluntarily liquidate itself.”
The company’s stock has been under tremendous pressure in recent months, exacerbated by a letter from the bank on March 1 that earnings data would be delayed due to potential issues with internal controls. It was also under regulatory scrutiny.
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But that’s not the new big banking news is making waves in startup circles.
Silicon Valley Bank (SVB), a well-known technology industry institution that works with venture capital firms and start-ups, announced that it was raising capital through a share sale, among other things, costing $1.8 billion to pay itself off. of low-yield assets and a doubling of loan maturities.