These companies — Roku, Circle, Roblox, and more — were holding big bucks in Silicon Valley Bank when it collapsed

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Roku — a hardware digital media company known for its streaming devices — held about 26% of its cash in Silicon Valley Bank Financial, according to a securities filing, as other companies disclosed ties to the company after it was shut down by regulators on Friday became.

Important facts

roku held an estimated $487 million at SVB, about 26% of the company’s cash and cash equivalents as of Friday, according to a securities filing, with the remaining $1.4 billion in cash distributed among other financial institutions, the company noted firmly.

crypto company Circle revealed In a tweet late Friday, it held $3.3 billion in the bank, adding that the rest of its $40 billion in cash was held elsewhere.

Roblox According to a filing, the corporation kept 5% of its $3 billion in cash ($150 million) in the bank, although the video game company said SVB’s collapse will have “no impact” on day-to-day operations.

Crypto Exchange Platform BlockFi– which filed for bankruptcy in November – listed $227 million in uninsured portfolios at the bank.

United States missile laboratoryan aerospace company, said in a filing that it holds 7.9% ($38 million) of its total cash in SVB.

Juniper Networksa networking hardware company, said SVB held a “minimum” cash balance of less than 1% of the company’s total cash, which the company was trading at $880 million at the end of 2022.

Lending Clubwhose assets are worth $8 billion, said his holdings in SVB are “limited” to $21 million, an amount the company says poses “no risk” to its business.

Unity softwareknown for its video game engine, held less than 5% of its cash in SVB and expects “minimal impact” from the bank’s collapse, according to a press release.

iRhythm Technologies said it holds $54.5 million in equity interests in SVB, in addition to an outstanding $35 million term loan.

Some pharmaceutical and biotech companies have also disclosed interests in SVB, including Therapeutic protagonists ($13 million), Sangamo therapeutics ($34 million), Eiger Biopharmaceuticals ($8.3 million). Ginkgo Bioworks ($74 million) and Cancer ($10 million), which said their holdings accounted for an estimated 23% of the company’s total cash.

Crucial quote

Despite having more than a quarter of its cash in hand at SVB — with the company “not knowing” how much it can recover — Roku said it believes its existing cash balance will be “enough” to continue the company’s operations for the next year “and beyond.”

Surprising fact

The SVB collapse is the second largest banking collapse in U.S. history, after reported $212 billion in assets for the fourth quarter of 2022. The company is second only to Washington Mutual, which went bankrupt in 2008 when the bank was estimated to be worth $300 billion.

key background

SVB deposits grew from $60 billion in 2020 to almost $200 billion two years later as the tech industry grew during the pandemic. The bank then invested in debt securities such as US Treasuries and mortgage-backed securities, but when the Federal Reserve raised interest rates to fight inflation last year, the company’s investments began to fall. SVB sold assets amid a wave of withdrawals, resulting in $1.8 billion in losses. The bank’s collapse – highlighted by a 64% drop in share prices overnight – impacted other banks and cryptocurrencies before it was shut down by a California regulator.

Further reading

What you should know about the collapse of Silicon Valley Bank – the biggest bank failure since 2008 (forbes)

SVB shut down by California regulator after bank stocks plummet amid turmoil (forbes)

Silicon Valley Bank stock stalled after falling 64% premarket – VC funds urge companies to withdraw funds (forbes)

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