SVBank collapsed, while Bitcoin surges 13%
Binance’s billionaire founder and chief executive, Changpeng Zhao is pledging to spend as much as $1 billion on bitcoin, ether and Binance Coin tokens.
His announcement came after U.S. regulators promised to backstop deposits for two failed regional banks, helping fuel a rise in bitcoin prices.
Tweet on SVB collapse and BTC surge
SVBank collapsed, but Bitcoin surges 13%
Binance’s founder, Zhao is pledging to spend over $1 billion on bitcoin & etherThe announcement came after U.S. regulators promised to backstop deposits for two failed regional banks, helping fuel a rise in BTC#BTC #SVBCollapse pic.twitter.com/3SpCpsDAbl
— The_Journalbiz (@the_journalbiz) March 13, 2023
Mr. Zhao, himself an investor in bitcoin and Binance Coin, said the funds would come from his exchange’s Industry Recovery Initiative fund, which was launched during the collapse of the crypto exchange FTX in November. Mr. Zhao did not specify how much of the fund remained.
Bitcoin traded for almost $24,000 on Monday afternoon, an increase of 13% from Sunday at 5pm.
Binance Coin rose almost 10% and ethereum rose 6% during the time period.
Investor optimism extended to other crypto stocks.
- Shares of crypto exchange Coinbase Global got an 11% lift.
- Grayscale Bitcoin Trust shares rose almost 12%.
Mining companies Marathon Digital Holdings and Hut 8 Mining Corp each rose about 20%.
Meanwhile, three bank failures in a week led regional bank stocks to stage a deep retreat.
