SVB Financial Group (SIVB) has officially collapsed after a bid to raise capital backfired tremendously, leading to a bank run and a sharp decline in the company's stock.
CNBC's Jim Cramer, who has been a fan of the troubled bank previously, is played clean up Friday after his previous advocacy for it.
"Yes SVB is a bank but not all banks are like SVB and almost none use pre-ipo shares as collateral. However, many are underwater in treasurys," Cramer stated to start off a series of tweets on the subject.
SVB's stock suffered 68% premarket drop before trading was halted Friday morning.
In an effort to calm investors from turning SIVB's demise into a market-wide contagion, Cramer attempted to "otherize" Silicon Valley Bank.
"Tough for a market to handle banks that use bitcoin and "pre-ipo" stocks as collateral but at least there are only two large ones: SI and SIVB," he continued.
He also has a theory on who is leading the charge against SIVB.
"It is very rare to see this much of a bear raid against a bank but these VC's sure let their feelings known...," Cramer said.
There are already talks of a potential bailout on FinTwit.
But Cramer does see a light at the end of the tunnel for SIVB and even gave a level for investors to watch.
Jim Cramer was an SVB booster just weeks ago on Mad Money.
