The collapse of Silicon Valley Bank – the second largest in US banking history – caused anxiety throughout the financial system and rocked the tech industry, raising concerns about whether companies could get their money back and pay their employees.
The federal government took over the bank after a surprise statement last Wednesday night revealed it had sold $21 billion in assets and was dumping shares to raise money. These are some of the companies affected by the fall of Silicon Valley Bank, which was known for serving start-ups, technology companies and venture capitalists.
Read: European banks fall dragged by the shock wave of Silicon Valley Bank
Roku
The company that has built a brand in streaming devices low-priced said in a presentation that he had about $487 million of his $1.9 billion in Silicon Valley Bankabout 26 percent of the firm’s cash.
“The company’s deposits at SVB are largely uninsured,” read the statement, signed by Roku CFO Steve Louden. “At the moment, the company does not know to what extent it will be able to recover its cash deposited at SVB.”
The San Jose-based company, which went public in September 2017, said it has enough money and cash flows to “meet its working capital” for at least the next 12 months.
At the close of US markets on Friday, Roku shares were trading at $59.99, down 0.53 cents from the previous day.
– – –
Circle
Payment technology company Circle tweeted that $3.3 billion of its $40 billion USD Coin (USDC) cryptocurrency reserves remained with Silicon Valley Bank.
“Like other clients and depositors who have trusted SVB for banking services, Circle joins calls for the continuity of this important bank in the US economy and will follow the guidance provided by state and federal regulators,” it said. the Boston-based company in a tweet on Friday.
The bank, Circle said in another tweet, was one of six it uses to manage the 25% of USDC reserves it holds in cash. The company had about $44.5 billion in tokens in circulation in January, according to a reserves report issued by Deloitte accountants.
“While we await clarity on how the FDIC receivership of SVB will affect its depositors, Circle and USDC continue to operate as normal,” the company said. The company was trading below $1 on Friday.
– – –
Roblox
Roblox, the California-based online gaming platform with metaverse ambitionsdisclosed in a filing with the SEC that about 5 percent of his $3 billion of cash as of February 28 was kept at Silicon Valley Bank.
Chief Financial Officer Michael Guthrie said in the presentation that no matter the bankruptcy outcome and timing, “this situation will have no impact on the day-to-day operations of the company.”
As of Friday’s close, Roblox shares were trading at $40.05, up 0.28% from the previous day.
– – –
BlockFi
Defunct cryptocurrency lender BlockFi has $227 million in Silicon Valley Bankaccording to a new bankruptcy filing.
Its trustee warned this week that BlockFi’s funds are not insured because they are in a money market mutual fund, a type of fund that invests in cash and low-risk, short-term debt securities.
The New Jersey-based cryptocurrency bank filed for bankruptcy in November following the arrest of Sam Bankman-Fried, the CEO of FTX. Bankman-Fried had vowed to bail out the crypto lender, which had been in financial trouble for months.
Despite its announcement to lend BlockFi up to $400 million, the private company filed for Bankruptcy Court for the District of New Jersey. The firm also has an international subsidiary in Bermuda that filed for bankruptcy there.
– – –
Compass Coffee
An email from CEO Michael Haft obtained by Fox Business said the District of Columbia-based coffee company’s payroll was “severely impacted” by the collapse of Silicon Valley Bank.
Haft said in the email that the private coffee company had learned that its payroll “was not processed by the bank as planned.” Employees were expected to receive their payments no later than Monday, depending on their bank, the email said.
His company was “working tirelessly” on the matter and “taking all possible steps” to avoid a similar situation in the future, Haft said in the email. The company changed supplier for the next week.
– – –
camping
The New York-based private toy store took to social media for help just hours after regulators shut down Silicon Valley Bank on Friday.
“Our bank was closed by regulators so we ask you to RUN, don’t walk to our BANKRUN sale,” the company posted on its social media accounts with a photo of a solemn-looking girl and caption that read: “When your bank collapsed. The retail company asked its customers to purchase items from its 40% online sale.
In an email to customers sent Friday, CNN reported, co-founder Ben Kaufman said: “Unfortunately, we had most of our company’s cash assets in a bank that just collapsed. I’m sure you’ve heard the news.”
Camp did not immediately respond to a message from The Washington Post on Saturday asking questions about the company’s assets and whether they remained in the bank at the time of its collapse.
– – –
Axsome Therapeutics
The pharmaceutical company Axsome Therapeutics It said Friday it had “material” cash deposits at Silicon Valley Bank and another bank, but that it believed the second bank’s account and an existing loan would be sufficient to continue financing operations. The company is publicly and privately owned.
As of Friday’s close, Axsome Therapeutics shares were trading at $58.39, down 5.78% from the previous day.
