SVB Financial files for Chapter 11 Bankruptcy as Bitcoin, crypto sees green

• SVB Financial has decided to file for Chapter 11 in a Southern District Court of New York
• The group reported liquidity of around $2.2 billion in the filing

On the one hand, Bitcoin (BTC) and other cryptocurrencies have started to thrive in the market. On the other hand, the picture is completely opposite when it comes to the traditional banking system in the United States. In the middle of the collapse of the banking system, SVB Finanskonsern has announced that it will start bankruptcy.

According to SVB, this is done to “preserve the value”.

Read Bitcoin [BTC] Price prediction 2023-24

In particular, the press release made it clear that the group is no longer related to Silicon Valley Bank, which was associated with crypto entities. This is because the failed bank’s business is handled by the Federal Deposit Insurance Corporation (FDIC). Because of this, the bank will not participate in the financial group’s bankruptcy proceedings.

The Chapter 11 filing was filed 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 registration as they are legally separate from the group.

Regarding the current financial status, the group said that the current liquidity is around $2.2 billion. It added,

“In addition to cash and its holdings in SVB Capital and SVB Securities, SVB Financial Group has other valuable investment accounts and other assets for which it is also exploring strategic options. SVB Financial Group’s funded debt is approximately $3.3 billion in aggregate principal amount of unsecured notes.

Bitcoin and the crypto market are rising

While there is absolute chaos in the traditional financial system, Bitcoin (BTC) and other cryptocurrencies are breaking new barriers with each passing day. The royal coin breached the $27,000 level earlier today. According to CoinMarketCap, Bitcoin was trading at $26,447 at press time, having recorded an increase of over 6% in the last 24 hours. Moreover, its 7-day change showed that the royal coin’s value had increased by over 33%.

Other top cryptocurrencies such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA) and Polygon (MATIC) also recorded double-digit gains in the past week. Altcoins have been in an upward trend ever since notable influencers voiced that crypto can be a safe option during the current banking crisis.