Roku disclosed that it held 26% of its cash at SVB which was largely uninsured.
Roku
Roku said in an SEC filing Friday that it held $487 million of cash at Silicon Valley Bank.
That’s 26% of the company’s cash, which Roku disclosed was largely uninsured.
The collapse of SVB marks the largest bank failure since the 2008 recession.
Streaming company Roku disclosed Friday that it had $487 million parked in now-failed Silicon Valley Bank— that’s 26% of the company’s cash.
The disclosure only adds to the alarm surrounding tech companies that do business with SVB after regulators shut down Silicon Valley Bank on Friday, marking it as the largest bank failure since the 2008 recession.
Roku said in its disclosure to the SEC that approximately 26% of the $1.9 billion in total cash and cash equivalents it has as of Friday were held at SVB.
According to the FDIC’s statement, when the bank opens on Monday, March 13, all insured depositors will have access to their insured deposits. However, Roku noted in the filing that its deposits with SVB are largely uninsured.
“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku said in the filing.
Still Roku said in the filing that its “existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond.”
Roku’s remaining $1.4 billion in cash and cash equivalents have been distributed across “multiple large financial institutions” the company said in the filing.
The company’s stock has dropped almost 4% in recent after-hours trading, according to Yahoo Finance.
Representatives for Roku did not immediately respond to Insider’s request for a comment.