American Companies Affected by Silicon Valley Bank Collapse
Recently, many American companies and businesses have revealed that they were affected by the sudden collapse of Silicon Valley Bank (SVB). Amongst those banking with SVB, the most notable are Vox Media, Roblox, Roku, and Circle. Besides Etsy sellers affected by the shutdown of SVB, many more American companies and businesses have been impacted.
Vox Media, the parent company of The Verge, Vox, and Polygon, had a substantial amount of its operational cash in Silicon Valley Bank. The New York Times reported that Vox Media’s credit cards, which Silicon Valley Bank issued, had stopped working on Friday. However, the company does not expect any disruption to its business yet, including payroll to its employees.
Penske Media, Vox Media’s largest shareholder, said in a statement that it was ready if the company required additional capital but added that it didn’t foresee any issues for the time being.
Roblox Corporation held 5% of its $3 billion in cash (150 million USD) at the bank. However, according to a filing, the video game company said SVB’s collapse will “have no impact” on its day-to-day operations.
Unity Technologies disclosed to authorities in the country today that the company held less than 5% of its cash and cash equivalents at Silicon Valley Bank and expects “minimal impact” from the bank’s collapse.
However, Unity Technologies has swiftly informed its video game publishers using Unity via email to swiftly update their payout institution from SVB to other banks before March 20, 2023, to avoid delays in payments.
Roku reports that 487 million USD of its cash was within SVB, which is 26% of the company’s assets. What is more worrying is that Roku’s deposits with Silicon Valley Bank are largely uninsured. At this time, Roku does not know to what extent the company will be able to recover its cash on deposit at SVB.
American Cryptocurrency firm Circle had a massive 3.3 billion USD invested with Silicon Valley Bank, which is around 8% of the company’s total $40 billion, which is held elsewhere.
Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by the state and Federal regulators.
It is clear that the collapse of Silicon Valley Bank has had a significant impact on many American companies and businesses. While some companies have reported minimal impact, others are still unsure of the extent of the damage. It remains to be seen how the situation will develop and what the long-term effects will be.