Roblox Had $150 Million at SVB Bank

gamerant.com:

Roblox Corp. just revealed it had $150 million of its funds in the recently collapsed Silicon Valley Bank (SVB). Robloxis just one of the many tech companies that were affected by the fallout of SVB’s closure last week and are now seeking the government’s help to access funds.

Known as a huge hit among kids and teenagers, Roblox has around 60 million daily active users, over half of them below 13 years old. By using the platform, gamers can create distinct kinds of games, ranging from adaptions from famous franchises like Sonic the Hedgehog to really scary Roblox horror games. The is platform is free to use, and uses microtransactions as a way to monetize the experience.

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Today, the developers behind Roblox have revealed that around 5% of its funds, $150 million, were stored in the now-defunct SVB. The information comes from a recent SEC filing asking for a bailout. Due to the amount being small when compared to the total funds owned by the developer of one of the best PC games for kids, the company believes that it will be fine, according to GameSpot.

The case occurs during the fallout of SVB’s closure, which happened last week. The 40-year-old financial institution was shut down by regulators amid a huge crisis, which made its stocks go down over 60% and prompted an immediate shutdown. At the moment, the U.S. government says it won’t help the bank to get back on its feet, but it will work to allow companies affected by the bankruptcy to get their money back. Normally, customers only get insurance on deposits up to $250,000, but due to the importance of the case, companies like Roblox Corp. can file for larger amounts of refunds to keep allowing