Argonaut has been short Silicon Valley Bank (SVIB) for the last six months, with an average entry price of $260. On Wednesday evening, the bank announced a $2.5bn equity raise and a $21bn sale of held-to-maturity Treasury and Agency securities (which realized a $1.8bn loss). Subsequently, its share price fell 60%. Today, it has been reported that the capital raising has failed, and the bank is working on a sale, which in our view will not recover any value for its equity investors. After falling another 40% pre-market, the stock has been suspended from trading.
‘Silicon Rupture’
10 Mar 2023
Posted by Barry Norris