SVB Financial (SIVB:US) saw its stock fall over 60% on Thursday and is trading further lower on Friday after the company announced plans to raise over $2 billion in cash to offset losses.

SVB Financial’s CEO Greg Becker wrote a letter on Wednesday to confirm the bank sold “substantially all of our Available for Sale (AFS) securities portfolio” with an aim of raising $1.75 billion.

In addition, General Atlantic will invest $500 million in SIVB for a total raise of $2.25 billion. The sale of securities will result in a post-tax loss of $1.8 billion, the company said. 

“We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses. We are experienced at navigating market cycles and are well positioned to serve our clients through market volatility, with a high-quality, liquid balance sheet and strong capital ratios,” Becker said in a letter.

This rapidly-developing catalyst took place after crypto-focused bank Silvergate announced it will wind down its operations. SIVB, on the other hand, insists it has minimal exposure to crypto.

The SIVB crash also pushed the SPDR S&P regional banking ETF down to its lowest level since January 2021.

Congressman Ro Khanna was consistently selling SIVB shares in the closing months of 2022. He had started acquiring the shares in mid-2021 and was regularly investing in the company until the last week of September when the sale process was initiated. 

His most recent trade was a Buy, completed on January 09 when the SIVB stock closed at $249.43.Shares closed at $106.04 on Thursday.