Crypto Plunges as Silicon Valley Bank Crash Rocks Markets

• Silicon Valley Bank fails to reassure customers of its financial state, causing a dramatic decrease in the shares of SVB Financial Group, the bank’s parent business.
• Private equity firm General Atlantic purchases $500 million common stock from Silicon Valley Bank and hedge funds urge investors to withdraw their cash.
• Cryptocurrency firms are already looking for other banking choices due to Silvergate Bank’s failure earlier this week and SVB’s troubles.

Silicon Valley Bank Struggles

The announcement by Silicon Valley Bank of an offering of $1.75 billion has caused investors to sell their shares, leading to a dramatic decrease in the shares of SVB Financial Group, the bank’s parent business, which plunged by more than 60%. Furthermore, Silicon Valley Bank lost another 44% on March 10 pre-market trading.

Hedge Funds Urge Investors To Withdraw

Peter Thiel’s Founders Fund has recommended to portfolio firms that they remove their cash from the failing Silicon Valley Bank. Additionally, Pantera Capital advises its portfolio companies to investigate the possibility of opening several accounts. Bloomberg also mentions five more venture capital investors in cryptocurrency have given similar advice to firms they have sponsored but remain unnamed due to commercial sensitivities involved.

Cryptocurrency Firms Seek Alternatives

Due to Silvergate Bank’s failure earlier this week and SVB’s troubles, cryptocurrency firms are already attempting to find alternate banking solutions. A web3 firm owner reported difficulty logging into his account and several users brought this problem attention on Twitter. Despite being a go-to bank for many venture-backed technology businesses located in the United States with over 2,600 customers in their financial technology industry alone; difficulties have arisen for many customers using their services lately.

General Atlantic Purchases Stock

In addition to recommending withdrawals from Silicon Valley Bank, private equity firm General Atlantic purchased $500 million worth of common stock from them as an attempt at shoring up its balance sheet..

Summary

Overall, it is clear that Silicon Valley Banks is having a hard time as cryptocurrency firms seek other banking solutions due to recent failures such as Silvergate Banks and issues with customers utilizing their services. Private equity firm General Atlantic purchased $500 million worth of common stock but hedge funds still advise investors remove their assets from the bank until further notice

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