The fall of Silicon Valley Bank prompted Venture Capitalist Tim Draper to tell the firms he’d invested in to buy Bitcoin.

Venture capitalist Tim Draper suggests companies use Bitcoin (BTC) as a hedge against financial risk, especially following the collapse of Silicon Valley Bank (SVB) in March 2023. This event left many cryptocurrency and tech firms unable to access funds, highlighting the risks of relying on a single financial institution. Draper, whose investment portfolio was heavily impacted, advises companies to establish treasury departments and diversify their capital. Specifically, he recommends allocating one-third of their funds to a large bank, one-third to a small bank, and one-third to Bitcoin. This strategy aims to mitigate risk by ensuring liquidity and leveraging Bitcoin as a safeguard against potential banking failures. While some forward-looking firms have adopted similar strategies, the broader adoption of Bitcoin as a risk management tool remains limited.