Silicon Valley Bank Financial Group announced on Friday that it has filed a voluntary petition for court-supervised reorganization under Chapter 11 of the United States Bankruptcy court amid the emerging crisis. This is after U.S. financial institutions. intervened to deal with the banking disaster that erupted.
SVB mentions that the funds and entities of SVB Securities' general partner and SVB capital are not part of this filing. The mentioned entities will continue to operate as usual. SVB Capital funds will have permanent access to funding sources including subscription credit facilities and more.
Based on the announcement, the company now has about $2.2 billion in liquidity. In addition to cash, the firm has other valuable investment securities. Meanwhile, debt financed by SVB Financial Group is approximately $3.3 billion in aggregate principal amount of unsecured notes.
They added that the Financial Group has $3.7 billion of outstanding preferred equity. However, Bitcoin, the largest crypto-asset continued to surge by 8% to trade at an average price of $26,653. It's about to hit the $27k milestone. BTC's 24-hour trading volume increased by 4% to $42 billion.
