Shares of tech-focused bank SVB Financial plunged by more than 50% on Thursday after the company announced a plan to raise more than $2 billion in capital to help offset losses on bond sales.
Trading in the stock was halted for volatility multiple times during the session, and the drop brought SVB’s market cap below $8 billion. The decline pushed the shares to their lowest close since 2015.
The decline in SVB's stock price is a reflection of the difficult times in which the bank finds itself. The global economic downturn has put a strain on the bank's lending and has led to a decline in the bank's net income.