SVB Bank Files for Bankruptcy as BTC Hits $27K

• SVB Financial Group, a tech-supporting bank, has filed for Chapter 11 Bankruptcy Protection.
• The filing was sent to the US Bankruptcy Court for the Southern District of New York and comes as Bitcoin’s latest price push took it to $27,000.
• The bank has $2.2 billion of liquidity and $3.3 billion in unsecured notes that are only recourse to SVB Financial Group.

SVB Financial Group Files for Chapter 11 Bankruptcy Protection

The California-based tech-supporting bank SVB Financial Group has officially announced filing for a „court-supervised reorganization under Chapter 11“ a week after its shares were halted and the FDIC had to intervene. This comes amid Bitcoin’s latest price push that drove it to a multi-month high at $27,000.

Filing Details

The filing was sent to the US Bankruptcy Court for the Southern District of New York and outlines details about the funds of SVB Securities and SVB Capital that are not included in the Chapter 11 filing and continue to operate „in the ordinary course.“ The PR by SVB Financial Group also states that SVB Private is no longer affiliated with them and is now operating under the jurisdiction of Federal Deposit Insurance Corporation (FDIC).

Financial Resources Available

The company declared having $2.2 billion of liquidity as well as additional cash and interests in SVB Capital and SVB Securities which will be used to explore „strategic alternatives“. Meanwhile, their debt is believed to be $3.3 billion in aggregate principal amount of unsecured notes, which are only recourse to SVB Financial Group.

Previous Developments

These developments come after last week when Silicon Valley Bank’s shares were halted from trading on Nasdaq following news about its financial troubles due to deteriorating assets quality highlighted by FDIC’s intervention into its operations. Following this news, Silicon Valley Bridge Bank N.A., acted as successor entity taking over from Silicon Valley Bank N.A., however without including any part of it in this bankruptcy processs filed by SVG Financial Group today..


In conclusion, we see another case where BTC’s recent market performance has been accompanied by stories such as these relating corporate bankruptcies related or not linked with crypto investments or activities involving cryptocurrency markets