The companies raised their alarms after the crisis that ended the 40-year history of Silicon Valley Bank. The technological platforms owned millions of assets in the bank.
The technology companies they set off their alarms after the collapse of the Silicon Valley Bank, the second largest in all of US banking history. After the federal government took over the bank, certain companies were directly affected.
Last Friday, the 40-year history of Silicon Valley Bank it came to an abrupt end when regulators closed the bank and appointed the Federal Deposit Insurance Corporation as its receiver. For startups and investors who have been financing SVB as a bank, it raised new questions about deposits.
For the US startup ecosystem, lThe news marks the end of an era. Days ago, Silicon Valley expressed its concern about the funds and an action plan that scared the sector.
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surprise. Silicon Valley Bank collapsed last Friday.
Silicon Valley fall: which companies are affected
- Roku: it is a company founded by Anthony Wood, a pioneer of streaming on TV. The brand of streaming devices assured that had $487 million of his total wealth ($1.9 billion) in Silicon Valley Bank. “The company’s deposits at SVB are largely uninsured,” said Steve Louden, the chief financial officer.
- Circle: Circle Pay is a payment company that allows you to send money over the internet, which also has USD Coin, the stablecoin issued by the company. The company had millions of dollars deposited in the bank and the consequences were not long in coming: USDC fell to $0.87 before recovering to $0.95 after $3.3bn of its funds ended up in the hands of the collapsed bank.. However, the company brought reassurance to its users: “While we await clarity on how the FDIC receivership of SVB will affect its depositors, Circle and USDC continue to operate as normal.”
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- Roblox: the online entertainment platform, where people can create public games through a digital tool, was also affected by the crash in Silicon Valley. From the company they revealed that about 5 percent of his $3 billion of cash as of February 28 was held at SVB. “It will not have any impact on the daily operations of the company,” said its CEO, Michael Guthrie.
- BlockFi: The company, previously declared as an ongoing bankruptcy case, had $227 million deposited in a money market mutual fund (MMMF) offered by Silicon Valley Bank (SVB). As detailed in the company’s latest audit report, BlockFi deposited 20% of its reserves (USD 8.6 billion) in North American financial institutions such as VB, Silvergate Bank and Bank of New York Mellon.
- Compass Coffee: According to an email released by Compass Coffee CEO Michael Haft, the coffee company was “severely affected”. The company is “working tirelessly” on the matter and “taking all possible steps,” she said.
Source: Ambito
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