SVB Financial files for Chapter 11 Bankruptcy as Bitcoin, cryptos see green
- SVB Financial has decided to move for chapter 11 filing before a Southern New York district court
- The group reported a liquidity of around $2.2 billion in the filing
On one hand, Bitcoin (BTC) and other cryptocurrencies have started to thrive in the market. On the other hand, the picture is quite the opposite as far as the traditional banking system in the United States is concerned. Amidst the collapse of the banking system, SVB Financial group has announced that it is commencing bankruptcy proceedings.
According to SVB, this is being done in order to “preserve value.”
Read Bitcoin [BTC] Price Prediction 2023-24
Notably, the press release made it clear that the group is no longer related to Silicon Valley Bank, which was associated with crypto-entities. This, because the failed bank’s dealings are handled by the Federal Deposit Insurance Corporation (FDIC). Due to this, the bank will not be participating in the financial group’s bankruptcy proceedings.
The Chapter 11 filing was registered in the United States bankruptcy court for the Southern District of New York. In a press release, the firm also claimed that SVB Securities and SVB Capital’s funds and general partner entities are not included in this filing as they are legally separate from the group.
As far as its present financial standing is concerned, the group said its current liquidity stands at around $2.2 billion. It added,
“In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group has other valuable investment securities accounts and other assets for which it is also exploring strategic alternatives. SVB Financial Group’s funded debt is approximately $3.3 billion in aggregate principal amount of unsecured notes”
Bitcoin and crypto-market rises
While there is absolute mayhem in the traditional financial system, Bitcoin (BTC) and other cryptocurrencies are breaking new barriers with every passing day. The king coin breached the $27,000-level earlier today. According to CoinMarketCap, Bitcoin was trading at $26,447 at press time, having registered a hike of over 6% in the last 24 hours. Moreover, its 7-day change showed that the king coin’s value had appreciated by over 33%.
Other top cryptocurrencies such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Polygon (MATIC) also recorded double-digit hikes in the past week. The altcoins have been on an uptrend ever since notable influencers voiced crypto might be a safe alternative during the current banking crisis.