These Companies were Affected by The Silicon Valley Bank crash

photo: The New York Times

On Friday, Silicon Valley Bank, the second-largest bank failure in U.S. history, caused worry throughout the financial system and rocked the tech industry. There were concerns about the ability of companies to retrieve their funds and pay their employees.

Following a sudden filing on Wednesday night revealing that the bank had sold $21 billion in assets and was selling stocks to raise funds, the federal government took over the bank. The bank had a reputation for serving start-ups, tech companies, and venture capitalists. Here are some of the companies affected by Silicon Valley Bank's collapse.


Roku, a company known for its affordable streaming devices, has disclosed in a filing that as of Friday, it had approximately $487 million of its $1.9 billion in cash deposited at Silicon Valley Bank, which is around 26 percent of the company's total cash reserves. The filing, signed by Roku's Chief Financial Officer Steve Louden, states that the company's deposits with Silicon Valley Bank are mostly uninsured, and that it is uncertain whether the company will be able to recover its funds.

Despite the uncertainty surrounding its deposits, the San Jose-based company, which went public in September 2017, stated that it has sufficient funds and cash flow to meet its working capital requirements for the next 12 months.

As of the close of U.S. markets on Friday, Roku's stock was valued at $59.99, a decrease of 0.53 cents from the previous day.


On Friday, payments technology firm Circle announced via Twitter that $3.3 billion of its USD Coin (USDC) cryptocurrency reserves, out of a total of $40 billion, were held at Silicon Valley Bank. The Boston-based company expressed support for the continuity of the bank, which had also served as a banking provider for other customers and depositors. Circle pledged to follow regulatory guidance provided by state and federal regulators.

In another tweet, Circle stated that Silicon Valley Bank was one of the six banks it utilized for managing 25 percent of the USDC reserves held in cash. As per a reserve report released by accountants at Deloitte, the company had around $44.5 billion worth of tokens in circulation in January.

Despite the uncertainty surrounding Silicon Valley Bank's receivership by the FDIC and its impact on depositors, Circle and USDC continue to function as usual, according to the company's statement. The company's stocks traded below $1 on Friday.


photo: Roblox

Roblox, a California-based online gaming platform with metaverse aspirations, revealed in a filing with the Securities and Exchange Commission on Friday that around 5 percent of its $3 billion in cash reserves as of February 28 was deposited at Silicon Valley Bank.

In the filing, Chief Financial Officer Michael Guthrie stated that the bank's collapse and the timing of its resolution will have no impact on the company's daily operations, regardless of the outcome.

At the end of Friday's trading, Roblox's stock was priced at $40.05, which was a 0.28 percent increase over the previous day's closing price.



A recent bankruptcy filing revealed that the now-defunct cryptocurrency lender, BlockFi, has $227 million deposited in Silicon Valley Bank. However, the trustee cautioned that the funds are not insured because they are held in a money market mutual fund, which invests in low-risk short-term debt securities and cash.

BlockFi, based in New Jersey, filed for bankruptcy in November after the arrest of its CEO, Sam Bankman-Fried, who is also the CEO of FTX. Despite Bankman-Fried's promise to lend the struggling crypto lender up to $400 million, the privately held company filed for bankruptcy in the US Bankruptcy Court for the District of New Jersey. Additionally, the firm has an international subsidiary in Bermuda that has also filed for bankruptcy.

Compass Coffee


According to an email obtained by Fox Business, CEO Michael Haft stated that the payroll of the Washington D.C.-based coffee company was severely impacted by the collapse of Silicon Valley Bank.

Haft disclosed that the bank had not processed the company's payroll as planned and that the delay had affected their employees. The email also stated that the payments were expected to be received by Monday, depending on the employee's bank.

Haft reassured employees that the company was actively working to resolve the issue and to prevent similar situations from occurring in the future. The company has switched providers for next week's payroll.


New York-based privately owned toy store Camp turned to social media for assistance just a few hours after the regulators closed down Silicon Valley Bank on Friday. The retail company published a post on its social media accounts with a photograph of a girl looking sad and the message, "When your bank collapses," announcing a BANKRUN sale. The company urged clients to take advantage of its 40% online discount to purchase goods.

The Washington Post reached out to Camp for information regarding the company's assets and if they were still at the bank when it collapsed. However, they did not immediately receive a response. According to CNN, co-founder Ben Kaufman sent an email to customers on Friday stating that most of the company's cash assets were at the collapsed bank.

Axsome Therapeutics

Axsome Therapeutics, a pharmaceutical company, announced on Friday that it had "material" cash deposits at Silicon Valley Bank and another bank. However, it believed that the account at the second bank and an existing loan would be sufficient to continue funding operations. The company has both public and private ownership. Axsome Therapeutics' stock closed at $58.39 on Friday, which is 5.78 percent lower than the previous day.

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