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Roku among most-exposed firms with assets caught in SVB failure

Bloomberg
Bloomberg • 3 min read
Roku among most-exposed firms with assets caught in SVB failure
Roku disclosed that about 26% of its cash and cash equivalents balance as of March 10 — roughly US$487 million — is held at SVB. Photo: Bloomberg
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Shares of technology companies with money at Silicon Valley Bank may be active after US authorities pledged to fully protect all depositors’ funds following the collapse of the lender.

Dozens of companies have reported exposure to the bank, which in its four-decade history cultivated deep ties within the tech sector. The Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. on Sunday jointly announced efforts aimed at strengthening confidence in the banking system in the wake of SVB’s failure.

Roku Inc. is among those reporting the heaviest exposure. The maker of set-top boxes used for streaming film and television, had US$487 million ($654.9 million), or about a quarter of its cash and cash equivalents held at the bank. The disclosure late on Friday sent the stock down 3% in after-hours trading.

Rocket Lab USA Inc., a space launch startup, said it had about US$38 million of cash and cash equivalents at SVB. Meanwhile, video-game company Roblox Corp. had about US$150 million of its US$3 billion in cash and securities at the bank.

Here’s a look at many of the companies that have disclosed exposure to Silicon Valley Bank:

See also: China regulator is looking for buyers of SVB’s local venture

Roku

In its filing with the SEC, Roku disclosed that about 26% of its cash and cash equivalents balance as of March 10 — roughly US$487 million — is held at SVB. Roku said it isn’t sure how much of those deposits it will be able to recover. The filing also notes that it has approximately US$1.4 billion of additional cash and cash equivalents “distributed across multiple large financial institutions.”

Roblox

See also: Blackstone's Schwarzman says US banking crisis is 'solvable'

The company said Friday it is filing roughly 5% of its US$3 billion of cash and securities balance as of Feb. 28 is held at SVB. “Regardless of the ultimate outcome and the timing, this situation will have no impact on the day to day operations of the Company.” Shares of the video-game maker fell about 0.9% in post-market trading Friday.

Juniper Networks Inc.

The networking equipment maker said that while it “maintains operating accounts” at Silicon Valley Bank, they represent less than 1% of its total cash, cash equivalents and investments. As a result the company say its exposure to loss from SVB is “immaterial.” Shares of the company were unchanged after the close of trading Friday.

Rocket Lab

Shares of the space startup slumped 2.6% in post-market trading Friday after it said in a filing that it had deposits of roughly US$38 million in accounts with SVB, about 7.9% of its total cash and cash equivalents and marketable securities as of the end of December.

AcuityAds Holdings Inc.

The Canadian advertising-tech firm said in a statement Friday that nearly all of its cash is held at SVB. AcuityAds, which sells digital-advertising technology, says it had roughly US$55 million in deposits at the now defunct bank and about US$4.8 million at other banks, which it says it will use to “support continuing operations.”

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No Exposure

Some firms on the other hand, disclosed that they had no exposure or relationship with SVB at all. More than a dozen stocks filed form 8-Ks with the SEC simply to tell investors that they were aware of the situation and that they had no deposits with the bank.

Others waited until Saturday to clear the air, with Plug Power Inc.’s Director of Investor Relations Roberto Friedlander telling investors and analysts in an emailed statement that it only banks with tier one US banks. Shares of the hydrogen and fuel-cell maker had slumped more than 5% during Friday’s session.

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