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It’s not every day that banking news is the big story in the startup world, but here we are. Yesterday the previously crypto-friendly Silvergate Bank announced that it would “wind down operations and voluntarily liquidate” itself.
The company’s stock had been under massive pressure in recent months, exacerbated by a note from the bank on March 1 that its earnings data would be delayed due to possible internal controls issues. It was also under regulatory inquiry.
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But that’s not the new big banking news making waves in startup circles.
Silicon Valley Bank (SVB), a well-known institution in the technology industry that works with venture capital firms and startups alike, announced that it was raising capital via a share sale (among other mechanisms), taking a $1.8 billion charge to divest itself of low-yield assets and double its term borrowing.