Regulators in the United States closed Silicon Valley Financial Institution (SVB) due to the reckless fundraising by SVB and the abrupt closure of Silvergate Capital Corp. The sudden fall led to the destruction of startup company shares in the USA.
This comes after Silvergate’s failure. The parent company of Silvergate Financial institution announced plans to shut down operations and liquidate the firm. The claim was made after the bank disclosed $1 billion in losses during the fourth quarter of 2022 as a result of the bankruptcy of FTX, one of Silvergate’s key clients.
Elon Musk Suggestions Purchasing Collapsed Silicon Valley Institution
In a recent tweet, Razer Co-Founder and CEO Min-Liang Tan argued that Twitter could acquire SVB and turn into a digital bank.
When Musk said he’s open to the idea in response, the entire crypto industry was surprised.
Musk, the richest man in the world at the time, acquired Twitter in a $44 billion deal last year after months of turbulence and uncertainty.
The startup-focused lender is facing an existential crisis, so California banking regulators are acting to protect depositors. What plans Elon Musk would require for SVB are unknown.
Musk, on the other hand, has been focused on creating the all-encompassing app X for Twitter, so it would be a big deal if he can set up the financial foundation with the SVB acquisition. Musk has also stated that he wants to make Twitter the most significant financial institution.