Washington: The federal government took over the bank after a surprise filing Wednesday night revealed that it had sold $21 billion in assets and was unloading stock to raise money. Here are some of the companies affected by the fall of Silicon Valley Bank, which was known for serving start-ups, tech companies and venture capitalists.
Roku
The company that has built a brand on low-priced streaming devices said in a filing that it had about $487 million of its $1.9 billion at Silicon Valley Bank, about 26 percent of the firm's cash as of Friday.
"The company's deposits with SVB are largely uninsured," said the filing, which was signed by Roku Chief Financial Officer Steve Louden. "At this time, the company does not know to what extent the company will be able to recover its cash on deposit 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.
By the close of US. markets Friday, Roku's stock was valued at $59.99, 0.53 cents less than the prior day.
Circle
Payments-technology firm Circle tweeted Friday that $3.3 billion of the $40 billion of its USD Coin (USDC) cryptocurrency reserves remained at Silicon Valley Bank.
"Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the US economy and will follow guidance provided by state and federal regulators," the Boston-based company said in a tweet on Friday.
The bank, Circle said in another tweet, is one of six it uses for managing the 25 percent of USDC reserves held in cash. The company had about $44.5 billion worth of tokens in circulation in January, according to a reserve report issued by accountants at Deloitte.
"While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally," the company said. The company traded under $1 on Friday.
Roblox
Roblox, the California-based online gaming platform with metaverse ambitions, said in a Friday filing with the SEC that about 5 percent of its $3 billion of cash as of Feb. 28 was kept at Silicon Valley Bank.
Chief Financial Officer Michael Guthrie said in the filing that no matter the outcome of the bank's collapse and the timing, "this situation will have no impact on the day-to-day operations of the company."
At Friday's close, Roblox stock was valued at $40.05, 0.28 percent more than the prior day.
BlockFi
The defunct crypto lender BlockFi has $227 million at Silicon Valley Bank, according 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 after the arrest of Sam Bankman-Fried, the FTX chief executive. Bankman-Fried had pledged to save the crypto lender, which was in financial trouble for months.
Despite his announcement to lend BlockFi up to $400 million, the privately owned company filed in U.S. Bankruptcy Court for the District of New Jersey. The firm also has an international subsidiary in Bermuda that filed for bankruptcy there.
All of that spooked a number of prominent venture capitalists, including Peter Thiel’s Founders Fund, Coatue Management and Union Square Ventures, who, according to sources, instructed portfolio businesses to limit exposure and pull their cash from the bank. Other VC firms have asked portfolio companies to at least shift some of their cash away from the bank, while a number have indicated they will stand by SVB.
Compass Coffee
An email from CEO Michael Haft obtained by Fox Business said the District of Columbia-based coffee business's payroll was "severely impacted" by the collapse of Silicon Valley Bank.
Haft said in the email that the privately held coffee company had learned its payroll "was not processed by the bank as planned." Employees were expected to receive their payments by Monday at the latest, depending on their bank, the email said.
His company was "working tirelessly" on the issue and "taking every possible step" to avoid a similar situation in the future, Haft said in the email. The company changed providers for next week.
Camp
The New York-based privately owned toy store took to social media for help just hours after regulators shut down Silicon Valley Bank on Friday.
"Our bank got shut down by regulators, so we're asking that you RUN, don't walk to our BANKRUN sale," the company posted on its social media accounts with a picture of a girl looking solemn and text reading, "When your bank collapses." The retail company asked customers to purchase items from its 40 percent 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 at a bank which just collapsed. I'm sure you've heard the news."
Camp did not immediately respond to a message from The Washington Post on Saturday with questions about the company's assets and whether they remained at the bank at the time of its collapse.
Axsome Therapeutics
Pharmaceutical company Axsome Therapeutics said Friday that it had "material" cash deposits at Silicon Valley Bank and at another bank but that it believed the second bank's account and an existing loan would be enough for it to keep funding operations. The company is both publicly and privately owned.
At Friday's close, Axsome Therapeutics stock was valued at $58.39, which is 5.78 percent less than the day before.
