Roku

Roku—a hardware digital media company known for its streaming devices—held about 26% of its cash at Silicon Valley Bank Financial, according to a securities ...

[second-largest](https://www.forbes.com/sites/conormurray/2023/03/10/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=5f3560d03a21) bank failure in U.S. SVB sold assets amid a surge in withdrawals, which created $1.8 billion in losses. Treasuries and mortgage-backed securities, but as the Federal Reserve increased interest rates to combat inflation over the last year, the firm’s investments began to fall. The firm is second only to Washington Mutual, whose [2008 failure](https://www.nytimes.com/2023/03/09/business/silicon-valley-bank-investors-worry.html) came as the bank had an estimated $300 billion in assets. [$13 million](https://www.sec.gov/ix?doc=/Archives/edgar/data/1377121/000110465923031135/tm239184d1_8k.htm)), Sangamo Therapeutics ( [$34 million](https://www.sec.gov/ix?doc=/Archives/edgar/data/1001233/000162828023007587/sgmo-20230310.htm)), Eiger Biopharmaceuticals ( [$8.3 million](https://www.sec.gov/ix?doc=/Archives/edgar/data/1305253/000119312523067764/d471742d8k.htm)) and Oncorus ( [$10 million](https://www.sec.gov/ix?doc=/Archives/edgar/data/1671818/000095017023007351/oncr-20230310.htm)), which said its holdings represented an estimated 23% of the company’s total cash. SVB’s deposits grew from $60 billion in 2020 to nearly $200 billion two years later as the tech industry grew during the pandemic. [minimal](https://www.sec.gov/ix?doc=/Archives/edgar/data/1043604/000104360423000046/jnpr-20230310.htm)” cash balance of less than 1% of the company’s total cash, which the company listed as [$880 million](https://investor.juniper.net/investor-relations/press-releases/press-release-details/2023/Juniper-Networks-Reports-Preliminary-Fourth-Quarter-and-Fiscal-Year-2022-Financial-Results/default.aspx#:~:text=Fourth%20Quarter%202022%20Financial%20Performance,the%20third%20quarter%20of%202022.) at the end of 2022. [7.9%](https://www.sec.gov/ix?doc=/Archives/edgar/data/1819994/000095017023007358/rklb-20230310.htm) ($38 million) of its total cash at SVB. [according](https://www.sec.gov/Archives/edgar/data/1428439/000142843923000010/wk-20230310.htm) to a securities filing, wth its remaining $1.4 billion in cash is distributed across other financial institutions, the company noted. [according](https://www.sec.gov/ix?doc=/Archives/edgar/data/1315098/000110465923031295/tm239193d1_8k.htm) to a filing, though the video game company said SVB’s collapse will “have no impact” on its day-to-day operations. [revealed](https://twitter.com/circle/status/1634391505988206592) in a tweet late Friday it held $3.3 billion with the bank, adding the remainder of its $40 billion in cash was held elsewhere. [according](https://www.sec.gov/Archives/edgar/data/1428439/000142843923000010/wk-20230310.htm) to a securities filing, as other companies have disclosed ties to the firm after it was closed by regulators Friday.

The stock price of Roku Inc (NASDAQ: ROKU) dropped 3.03% after hours in the most recent trading session. This is why.

“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” said Roku in a statement. SVB is now placed into receivership by the Federal Deposit Insurance Corp. The stock price of Roku Inc (NASDAQ: ROKU) dropped 3.03% after hours in the most recent trading session.

Roku in a regulatory filing also said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading.

Online gaming firm Roblox also said it had about $150 million in deposits with SVB. SVB was shuttered by banking regulators on Friday in a bid to protect depositors following a dive in the value of its investment holdings and a rush of withdrawal requests starting just two days ago. Roku in a regulatory filing also said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading.

As of March 10, Roku had total cash and cash equivalents of approximately $1.9 billion. It added that roughly $487 million is held at SVB while the remaining ~$ ...

“Notwithstanding the closure of SVB, the Company continues to believe that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond,” it added. “The Company’s deposits with SVB are largely uninsured. At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku said in a filing.

Roku held approximately $487 million of its $1.9 billion in cash at Silicon Valley Bank, which collapsed Friday and was taken over by the Federal Deposit ...

BlockFi said in November it had [halted withdrawals ](https://www.cnn.com/2022/11/28/business/blockfi-bankruptcy-ftx-fallout/index.html)after facing “significant exposure” to Sam Bankman-Fried’s FTX exchange, as well as its sister hedge fund Alameda. Roblox also said in a filing that 5% of its $3 billion in cash was held at SVB. That means more than 90% of the company’s deposits were held in SVB. But the FDIC insured limit is $250,000 – many depositors had cash amounts in the millions stored at SVB. “The company’s deposits with SVB are largely uninsured,” Roku said. [statement](https://illumin.com/press/trade-halt-of-the-shares-of-acuityads/), the company said it requested a trade halt and its remaining cash “will be used to support continuing operations.”

Circle has $3.3 billion of its $40 billion of USDC reserves at collapsed lender Silicon Valley Bank, the company said in a tweet on Friday.

Online gaming firm Roblox also said it had about $150 million in deposits with SVB. SVB was shuttered by banking regulators on Friday in a bid to protect depositors following a dive in the value of its investment holdings and a rush of withdrawal requests starting just two days ago. Roku in a regulatory filing also said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading.

Of the companies listing assets caught up in the collapse of Silicon Valley Bank on Friday, Roku Inc. is among those reporting the heaviest exposure.

(Bloomberg) -- Of the companies listing assets caught up in the collapse of Silicon Valley Bank on Friday, Roku Inc. is among those reporting the heaviest ...