Billionaire Elon Musk announced his readiness to consider the possibility of acquiring Silicon Valley Bank (SVB), which was closed by the authorities.
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
He published the corresponding tweet in response to the proposal of Razer co-founder and CEO Min-Liang Tan to acquire SVB by Twitter and turn it into a digital bank.
In March, at the Morgan Stanley conference, the head of Twitter spoke about the desire to create a “very powerful financial experience” that will be even better than the payment giant PayPal.
On Friday, March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and transferred it to the control of the US Federal Deposit Insurance Corporation (FDIC).
According to the FDIC, as of December 31, 2022, SVB’s total assets were about $209 billion and total deposits were about $175.4 billion.
SVB is the bank of choice for a wide range of technology startups in the US. The company has over 2,600 clients from the fintech sector.
On March 9, SVB shares fell more than 60% and its capitalization fell by $10 billion after the institution announced the placement of almost all of its securities for $1.75 billion. In addition, venture capital firm General Atlantic bought a stake in the bank worth $500 million
Earlier, amid the collapse of SVB, stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar.