On Friday, the unthinkable happened: Silicon Valley Bank collapsed in just 48 hours, prompting federal regulators to take it over. Founded in 1983, the institution was a go-to place for tech startups, and numerous companies now have money hanging in the balance that may never return. One of those companies that has a staggering amount of money tied up there is perhaps the most popular gizmo for streamers.
According to CNN, Roku had about $487 million of its $1.9 billion stored in the now-closed bank. That’s about 26% of his cash balance.
“The company’s deposits with SVB are largely uninsured,” Roku said in a somber statement. “At this point in time, the company does not know the extent to which the company can recover its cash deposits with the SVB.”
That doesn’t mean Roku will suddenly stop working on the nation’s TVs. They said they had enough cash flow to “support working capital, capital expenditures and material cash needs from known contractual obligations for the next 12 months and beyond.”
Roku isn’t the only company where SVB funds may no longer exist. Roblox, the video game company, had a comparatively modest 3% of its $3 billion income tied up there, while aerospace maker Rocket Lab had invested 8% in SVB. Meanwhile, crypto lender BlockFi also held $227 million there, all uninsured. Not listening to Jim Cramer’s financial advice is another sign.
https://uproxx.com/viral/roku-quarter-cash-reserves-silicon-valley-bank/ Roku has a quarter of its cash in Silicon Valley Bank