Silicon Valley Bank bankruptcy: which are the most affected companies after its collapse

The second largest banking collapse in the history of the United States occurred this Friday, March 10, by Silicon Valley Bank (SVB), a situation that has generated great expectations with respect to the other entities that support the country's financial system.

The alarm went off last Thursday when the company confirmed that it had not obtained sufficient funds after the loss of sales for assets, the desperate withdrawal of approximately $42,000 million dollars by depositors , caused the entity to throw negative balances and declared insolvent.

The intervention of financial regulators was immediate, the Federal Deposit Insurance Corporation (FDIC) announced that it would protect deposits of up to $250,000 thousand dollars from insured customers and stressed that the money will be delivered no later than this Monday, March 13. However, some companies have been affected by the abrupt closure of SVB, such as:

Roku

The brand of digital media players, Roku announced on Monday that it had about $487 million of its $1.9 billion in cash in SVB , this is equivalent to 26% of its liquidity, it also noted that this amount was not insured. “At this time, the company does not know to what extent it will be able to recover its cash deposited at SVB,” he said in a statement.

Although the online multimedia content access company indicated that so far the banking collapse does not impede its operation and performance “there is sufficient cash to meet the working capital, capital expenditures and material cash requirements of known contractual obligations for the next twelve months and beyond,” he said.

Acuity Ads Holding

The Toronto-based technology company said in a statement that it has requested the suspension of its trading and will use the cash it currently has to support its operations after it became known that it had approximately $55 million in Silicon Valley Bank , that is, close to 90% of the company's deposits were in the banking institution.

RobloX

The famous online gaming platform, assured in a presentation before the Securities and Exchange Commission (SEC) that 5% of its $3,000 million dollars in cash were deposited in SVB, the company's financial director, Michael Guthrie affirmed that “This situation will not have any impact on the daily operations of the company,” he said.

Circle

The Boston-based tech company said via Twitter that about $3.3 billion of its $40 billion of cryptocurrency reserves were on deposit with Silicon Valley Bank.

“Like other clients who have trusted SVB for banking services, Circle joins the calls for the continuation of this major bank and will follow the guidance provided by state and federal regulators,” the company said on Friday.

Silicon Valley Bank was popular for serving start-ups, both for venture capitalists and technology companies.