March 30, 2023

Great Indian Mutiny

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Roku had nearly $500 million in a Silicon Valley bank and didn’t know if it was going to get the money back

New York (CNN) Roku has approximately $487 million of the $1.9 billion in cash at Silicon Valley Bank, which Friday collapsed It was acquired by the Federal Deposit Insurance Corporation, the broadcast technology company disclosed in the SEC filing.

That’s approximately 26% of the company’s cash and cash equivalents, Rocco (ROKU) He added that most of his deposits with the bank are not insured.

“The company’s deposits with SVB are largely uninsured,” Rocco said. “At this time, the company does not know to what extent the company will be able to recover cash deposited with SVB.”

However, Roku said it has sufficient cash flow and current cash flow from operations to “meet working capital, capital expenditures, and physical cash requirements from known contractual obligations for the next 12 months and beyond.”

SVB collapsed on Friday morning after a staggering 48 hours during which the bank’s management and capital crisis led to the second-largest financial institution failure in US history.

California regulators shut down the technology lender and put it under FDIC control.

The FDIC acts as receiver, which usually means that it will liquidate the bank’s assets to pay back its clients, including depositors and creditors.

Other companies face repercussions

Roblox also said in a filing that 5% of its $3 billion in cash was held in SVB. The video game company said the collapse would not affect its day-to-day operations.

Crytpo Bank BlockFi, which filed for bankruptcy in November, revealed that it held $227 million with SVB in filing for bankruptcy on Friday. BlockFi said in November that it had done so Withdrawals stopped After facing “significant exposure” to Sam Bankman Fried’s FTX stock exchange, as well as sister hedge fund Alameda.

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BlockFi funds in SVB are not FDIC insured because they were in a money market mutual fund, the company learned from a bankruptcy trustee early this week.

Aerospace maker Rocket Lab owns roughly 8%, or roughly $38 million, of the total cash in the collapsed bank, the company said in a statement on Friday.