Etsy, Bill.com and others disclose SVB exposure
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The failure of the SVB has affected numerous companies, some of which have significant funds with 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 their funds Etsy was holding at Silicon Valley Bank, which regulators shut down this morning.
“Are we getting our payout?” wrote a poster representing MaidenLane Boutique, a shop that sells tutus and princess costumes.
Etsy
(Ticker: ETSY) emailed its sellers the same day to let them know there was a “delay” due to “recent developments regarding the Silicon Valley Bank,” which Etsy was using to facilitate withdrawals. given when transferring their deposits. The online marketplace isn’t the only company left in limbo following the bank’s implosion.
Federal regulators on Friday shut down Silicon Valley Bank, a lender that finances mostly venture-backed technology and life sciences startups, after a bank run to sell assets of the bank that resulted in a $1.8 billion loss dollars followed. The Federal Deposit Insurance Corporation said depositors would have full access to insured deposits of up to $250,000 through Monday morning. Recovery of funds in excess of those insured by the FDIC remains uncertain.
As investors tried to gauge the impact of Silicon Valley Bank’s failure, many companies, including
Bill.com
stocks (ticker: BILL),
Roblox
(RBLX),
AcuityAds Holdings
(AT. Canada) and
Lending Club
(LC) informed about their deposits at the bank.
Etsy didn’t disclose the amount of funds tied up at Silicon Valley Bank, but a spokeswoman said the company “expects to pay sellers through our other payment partners within the next few business days.”
Bill.com, which offers financial automation software for businesses, said further Saturday that it holds approximately $670 million with Silicon Valley Bank, including approximately $300 million in the firm’s cash, cash equivalents and short-term investments and approximately $370 million held in escrow on behalf of its clients.
The company said it has a total of about $2.6 billion in company cash and cash equivalents held with multiple financial institutions and about $3.3 billion held with multiple institutions on behalf of clients .
“When we got the notification
SVB
‘S
Following the closure, we immediately re-routed payments to be made through SVB to one of our multinational bank processors,” the company said, assuring that its on-hand cash is sufficient to meet its working capital and other requirements.
Bill.com did not respond to this Barrons Request for comments.
shares of
AcuityAds Holding
s, a Toronto-based ad-tech company, was halted Friday in connection with SVB’s troubles. The company said it had $55 million in accounts with the bank and $6.7 million Canadian dollars ($4.8 million) in bank accounts outside of SVB. It said it would use that money to support ongoing operations.
A spokesman for AcuityAds said “business is good.” Another spokesman said: “The money held there was for strategic opportunities, not to fund the business.”
Roku (ROKU) and cryptocurrency firm Circle Internet Financial also announced on Friday that they had significant exposure to SVB. Roku said it held approximately $487 million, or 26% of its cash and equivalents, in the bank as of March 10. Circle, issuer of the second largest stablecoin, USDC, called $3.3 billion of the token’s $40 billion in reserves were in the bank.
Cryptocurrency firm BlockFi has invested $227 million in a money market fund offered by SVB. according to the US Department of Justice. Mutual funds are not insured by the FDIC. BlockFi filed for bankruptcy last year over collateral damage from the collapse of former cryptocurrency exchange FTX.
Other companies that disclosed exposure include Roblox, which said it held about 5% of its $3 billion in cash and securities at Silicon Valley Bank. financial services company
Lending Club
said it had $21 million in the bank. Both indicated in regulatory submissions that their exposure was not significant.
Aerospace manufacturers and launch service providers
United States missile laboratory
(RKLB) said in an 8-K filing that it has about $38 million in deposits with SVB, or about 7.9% of the company’s cash and cash equivalents.
Numerous other companies filed regulatory disclosures related to SVB on Friday. Many indicated that they had no involvement with the bank.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
https://www.barrons.com/articles/svb-etsy-roblox-roku-bill-news-805f3629?siteid=yhoof2&yptr=yahoo Etsy, Bill.com and others disclose SVB exposure
