I remember listening to an episode of Business Wars that was about crypto companies and how Silicon Valley Bank was basically the only company willing to invest in Coinbase.
In the context of this, I think about that a lot. https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
And to be clear, this cuts both ways. Sure it’s bad that a bank was invested in crypto, but this was the one traditional bank that was willing to take risks on new ideas. Losing that is going to be harmful for the startup industry long term.
@ernie If anything, it doesn't even seem like they took a bath on crypto.
It seems they took a bath on the 10-year T-bill, by over-buying on an asset that's *too* safe and therefore cannot respond to a rising tide of savings value expected due to the interest rate hike.
@mtomczak Yeah, they got nailed on something unrelated. But they were the bank that all these startups went to when nobody else would financially support their weird idea, so losing that is the real reason this stinks.