Silicon Valley Bank, one of the leading lenders to the tech sector, failed after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008. The bank’s failure caused a wider sell-off in stocks and sparked fears that other banks may be at risk of failure.
The bank was also criticized for its handling of the Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Across the Atlantic, startup companies woke up Saturday to find that Silicon Valley Bank’s U.K. business will stop making payments or accepting deposits.
Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.https://t.co/NU82jnajjY
— Circle (@circle) March 10, 2023
Roku tumbles in after-hours trading after saying that 26% of its cash and cash equivalents were held at Silicon Valley Bank and “does not know to what extent the Company will be able to recover its cash on deposit at SVB.” pic.twitter.com/6knlV7qvko
— CNBC Now (@CNBCnow) March 10, 2023
Per new bankruptcy filing, BlockFi has $227m in Silicon Valley Bank. The bankruptcy trustee warned them on Mon that bc those funds are in a money market mutual fund, they’re not FDIC secured — which could be a prblm w/ keeping in compliance of bankruptcy law pic.twitter.com/hnpo8anrrS
— Lauren Hirsch (@LaurenSHirsch) March 10, 2023
worst case scenario that $hims has all their cash and bonds with $svb they would be ok because they have zero debt and are free cash flow positive. @AndrewDudum already said they can cut back advertising spending very fast in an old interview. @AndrewDudum can you speak on this
— Samuel (@Samuel947117225) March 11, 2023
Hims did provide a press release that says, “The Company has limited cash exposure resulting from the liquidity concerns at SVB. The vast majority of the Company’s cash and short-term investments are held via third-party custodians other than SVB. Additionally, the Company does not have any debts or current lines of credit directly impacted by these events.”
Some of the companies that were cited by $SIVB as success stories on their website are publicly traded and are down ~6 to 16% today: $LIDR $GWH $HIMS $PRVA $RUN pic.twitter.com/UVnfnPzcbK
— The Transcript (@TheTranscript_) March 10, 2023
Sofi $SOFI has a $40M lending facility with SVB
Find a more comprehensive list on the Bedrock platform, under 8-K screening.
Sending best wishes to everyone impacted.
2/— Hudson Labs (formerly Bedrock AI) (@HudsonLabs) March 11, 2023
Update 3/11/23:
Bill. com, $BILL, had $300 million in cash and $370 million in client funds at Silicon Valley Bank.
— unusual_whales (@unusual_whales) March 12, 2023
Toronto-based AcuityAds has $55 million in deposits at SVB and just $4.8 million at other banks https://t.co/sz0QXHBRev
— Bloomberg Markets (@markets) March 11, 2023
