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The failure of SVB has touched many companies, some with significant money in the bank.
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on Friday afternoon,
Etsy
Sellers began posting on the e-commerce company’s community forum, All Things Finance, expressing concern about his funds that Etsy held at a Silicon Valley bank, which had been shut down by regulators that morning.
“Are we going to get our payment?” wrote a poster representing the Maidenlane Boutique, a shop that sells tutus and princess dresses.
Etsy
(ticker: ETSY) emailed its sellers the same day to let them know there was a “delay” in sending their deposits due to “recent developments regarding the Silicon Valley bank” used to facilitate Etsy disbursements. Used to take The online marketplace is hardly the only company left hanging in the balance after the bank implosion.
Federal regulators shut down Silicon Valley Bank, a lender to venture-capital-backed start-ups primarily in technology and life sciences, on Friday following a bank run that sold $1.8 billion in assets. Bank sale. The Federal Deposit Insurance Corporation said depositors would have full access to insured deposits of up to $250,000 as of Monday morning. Recovery of the excess money from those insured by the FDIC remains uncertain.
As investors try to measure the impact of the Silicon Valley Bank failure, several companies including
bill dot com
Holdings (ticker: BILL),
roblox
(rblx),
AcuityAds Holdings
(AT. Canada), and
lending club
(LC) provided an update on his deposits with the bank.
Etsy did not disclose the amount of funds tied up in the Silicon Valley bank, but a spokesperson said the company “expects to begin paying sellers through our other payment partners within the next several business days.”
Bill.com, which provides financial automation software for businesses, said Saturday That it has approximately $670 million in Silicon Valley Bank, including approximately $300 million in corporate cash, cash equivalents, and short-term investments, and approximately $370 million held in trust on behalf of its customers.
The company said it has approximately $2.6 billion in corporate cash and equivalents held at various financial institutions, and approximately $3.3 billion held at various institutions on behalf of customers.
“When we got information about
svb
‘S
Upon closure, we immediately redirected payments to be made through SVB to one of our multinational bank processors,” the company said, assuring that its existing cash is sufficient to meet its working capital and other requirements. Is.
Bill.com didn’t respond Baron’s Request for comment.
shares of
AcuityAds Holding
S, a Toronto-based ed-tech company, was grounded Friday in connection with SVB issues. The company said it had C$55 million on bank deposits, and C$6.7 million ($4.8 million) in bank accounts outside SVB. It said it would use that cash to support continued operations.
A spokesperson for AcuityAds said “the business continues to move on.” Another spokesman said, “The money that was put in there was for strategic opportunities, not to fund the business.”
Roku (ROKU) and cryptocurrency firm Circle Internet Financial also revealed on Friday that they had significant investments in SVB. Roku said it had about $487 million, or 26% of its cash and equivalents, in the bank as of March 10. Circle, the second largest stablecoin issuer of USDC, Said Of the $40 billion in token reserves, $3.3 billion was in the bank.
Cryptocurrency firm BlockFi has invested $227 million in a money market mutual fund offered by SVB. According to the US Department of Justice, Mutual funds are not insured by the FDIC. Blockfi filed for bankruptcy protection last year as a result of collateral damage caused by the failure of former cryptocurrency exchange FTX.
Other companies that disclosed exposure include roblox, which said it had about 5% of its $3 billion in cash and securities held at the Silicon Valley bank. financial services company
lending club
Said he had $21 million in the bank. Both mentioned in regulatory filings that their exposure is not material.
Aerospace manufacturer and launch-service provider
Rocket Lab USA
(RKLB) said in an 8-K filing that it has approximately $38 million on deposit with SVB, or approximately 7.9% of the company’s cash and cash equivalents.
Several other companies filed regulatory disclosures on Friday regarding SVB. Many indicated that they had no contact with the bank.
Write to Karishma Vanjani at [email protected]