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Roku, Lending Club, Roblox, And Other Companies Held Major Funds In Silicon Valley Bank

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Roku, Lending Club, Roblox, And Other Companies Held Major Funds In Silicon Valley Bank

(CTN News) – According to a securities filing, Roku, a hardware digital media company known for its streaming devices, held about 26% of its cash at Silicon Valley Bank Financial after the bank was closed Friday by regulators.

Approximately 26% of Roku’s cash and cash equivalents were held at SVB as of Friday, according to a securities filing, with the remaining $1.4 billion spread across other financial institutions.

In a tweet late Friday, Circle announced that it held $3.3 billion in cash at the bank, along with the remainder of its $40 billion in cash.

SVB’s collapse will not impact Roblox Corporation’s day-to-day operations, according to a filing, despite the video game company holding 5% of its $3 billion in cash ($150 million).

As part of its bankruptcy filing in November, crypto exchange platform BlockFi listed $227 million in uninsured holdings with the bank.

It was reported in a filing that Rocket Lab USA held 7.9% ($38 million) of its total cash at SVB.

The networking hardware company Juniper Networks reported that SVB held a “minimal” cash balance of less than 1% of its total cash, which was $880 million as of December 20, 2022.

According to LendingClub, whose assets Roku exceed $8 billion, its holdings at SVB are “limited” to $21 million, which “does not pose any risk” to its business.

According to a release, Unity Software, which is known for its video game engine, kept less than 5% of its cash and cash equivalents at SVB and expects a minimal impact from the bank’s collapse.

In addition to holding $54.5 million in SVB holdings, iRhythm Technologies also has an outstanding term loan of $35 million.

A number of pharmaceutical and biotechnology companies have also disclosed holdings at SVB, including Protagonist Therapeutics ($13 million), Sangamo Therapeutics ($34 million), and Eiger Biopharmaceuticals ($8.3 million).

The company’s holdings represent an estimated 23% of its total cash, according to Ginkgo Bioworks ($74 million) and Oncorus ($10 million).

The company stated that they do not know how much cash they will be able to recover, but they believe that their existing cash balance will be “sufficient” to continue operating for the next year and beyond.

Roku FACTS THAT MAY SURPRISE YOU

Upon reporting $212 billion in assets Roku for the fourth quarter of 2022, SVB’s collapse is the second-largest bank failure in U.S. history. Despite having an estimated $300 billion in assets, the bank failed in 2008 as a result of its failure.

A SUMMARY OF THE BACKGROUND

During the pandemic, SVB’s deposits grew from $60 billion to nearly $200 billion. As a result, the bank invested in debt instruments such as U.S. Treasury bonds and mortgage-backed securities.

However, as the Federal Reserve increased interest rates to combat inflation, the firm’s investment portfolio declined.

As a result Roku of a surge in withdrawals, SVB sold assets, resulting in a loss of $1.8 billion. Several other banks and cryptocurrencies were affected by the collapse of the bank, which was accompanied by a 64% drop in share prices overnight.

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