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Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy

Short sellers made $500 million in paper profits when SVB Financial Group’s stock plunged. Silvergate Capital Corp. also announced liquidation, amassing short sellers a $780 million payday.

1 min read
  • SVB Financial Group’s record plunge on Thursday minted short sellers roughly half a billion dollars in paper profits.
  • The stock fell another 63% in premarket trading Friday before being halted, with the Federal Deposit Insurance Corp. ultimately announcing that it had seized the bank.
  • The SVB collapse comes just a day after crypto-friendly bank Silvergate Capital Corp.’s announcement that it would liquidate and voluntarily wind down operations of its bank.
Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
SVB Financial Group’s record plunge on Thursday minted short sellers roughly half a billion dollars in paper profits. But they now face a challenge: how to close their positions.
BloombergBreanna Bradham

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