• Silicon Valley Bank’s stock offering of $1.75 billion and General Atlantic’s purchase of $500 million common stock have caused investors to sell their shares, leading to a dramatic decrease in the shares of SVB Financial Group.
• Hedge funds such as Peter Thiel’s Founders Fund and Pantera Capital have recommended that portfolio firms remove their cash from the bank.
• Several cryptocurrency firms are now looking for other banking choices as difficulties arise with Silicon Valley Bank.

Silicon Valley Bank Stock Plummets

The announcement of a stock offering of $1.75 billion by Silicon Valley Bank and a separate purchase of $500 million common stock by private equity firm General Atlantic has caused investor panic and led to a dramatic decrease in the shares of SVB Financial Group, the bank’s parent business, which plunged by more than 60%. Pre-market trading on March 10 saw an additional 44% loss in SVB Financial Group’s shares.

Hedge Funds Recommend Removing Assets

Peter Thiel’s Founders Fund and Pantera Capital, both hedge funds and venture investors, have recommended that portfolio firms remove their cash from Silicon Valley Bank due to its uncertain financial state. Bloomberg reported that five more venture capital investors in cryptocurrency have also given this advice but requested that their names not be used owing to the commercial sensitivities involved.

Crypto Firms Seeking Alternatives

With the failure of Silvergate Bank earlier this week, crypto-focused businesses are looking for alternative banking options as issues arise with Silicon Valley Bank. Several users have brought difficulty logging into accounts at SVB to Twitter’s attention. Despite working with over 2,600 customers in the financial technology industry alone according to its website, difficulties remain for many crypto companies seeking banking services from Silicon Valley Bank.

Widespread Panic Among Traders

The sudden plunge in SVB Financial Group’s shares has led to widespread panic among traders investing both in stocks and cryptocurrencies alike. As uncertainty continues over Silicon Valley Bank’s ability to remain solvent, some venture capital investors fear further losses if assets are not removed quickly enough from the bank’s balance sheet.

Future Uncertainty For Crypto Companies

It remains unclear whether or not Silicon Valley Bank will be able to successfully recover from this financial crisis or what consequences further losses could bring for venture-backed technology businesses located in the United States who depend upon it for secure banking services moving forward