US bank woes? Silicon Valley Bank stocks plunge 1 day after Silvergate downfall

cointelegraph.com:

Fears have been heightened over the future of another United States bank this week after Silicon Valley Bank (SVB) announced a significant sale of assets and stocks aimed at raising additional capital.

However, some investors may be concerned that not all is well at the tech startup and VC-focused bank, particularly given the closure of crypto bank Silvergate just a day earlier. Shares in Silicon Valley Bank collapsed over 60%, wiping some $80 billion in value from the bank's shares.

SVB is one of the top 20 largest banks in the United States and provides banking services to the likes of crypto-friendly venture firms Sequoia and Andreessen Horowitz (a16z).

In a Mar. 8 financial update, it disclosed it sold $21 billion worth of its securities holdings for a $1.8 billion loss to shore up its balance sheet.

It also raised $500 million from venture firm General Atlantic and is seeking to raise another $1.75 billion in sales of its shares to a total of $2.25 billion.

It said the sale was made as it expects “continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses.”

The release of the financials, however, plunged SVB’s stock price by 60% on Mar. 9 according to Google Finance, with investors concerned about the bank's financial positon. It’s also seen a further 23% decline in after-hours trading.

According to a Mar. 9 report from The Information, SVB chief, Greg Becker, told investors to “stay calm” and said the bank has “ample liquidity to support our clients with one exception: If everyone is telling each other SVB is in trouble, that would be a challenge.”

In a stakeholder letter Becker reaffirmed the bank was “well-capitalized” and had