10 sats \ 0 replies \ @_b_o_n_e_s_ 11 Mar 2023 \ on: ELI5 – What's happened to Silicon Valley Bank? ☠️ bitcoin
The bank was caught off guard on two fronts:
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VC money slowed which caused new deposit balances to slow,
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they were also expecting startups to slow their burn rate (and so slow the need to draw down on balances) more than what has occurred
Selling their Treasuries at a loss to meet the higher than expected customer demands for their funds rekt them once word got out they needed to raise money to cover those losses
I find second point the most interesting, means still a lot of companies with high burn rates who may also get rekt as this thing works its way through system