Roblox had $150m exposure to Silicon Valley Bank
Games platform Roblox had around $150 million in holdings in the troubled Silicon Valley Bank.
In a filing with the SEC, the company revealed that "approximately" five per cent of the $3 billion that it has in cash was being held within the financial institution. Roblox has claimed that it has not been affected by Silicon Valley Bank's demise.
The organisation was closed on Sunday, March 12th by the US' Federal Deposit Insurance Corporation. following a bank run. This was the result of instability owing to poor strategy and the expectation that interest rates would stay low indefinitely. Silicon Valley Bank was the 16th largest bank in the US.
"Thus, regardless of the ultimate outcome and the timing, this situation will have no impact on the day-to-day operations of the Company," Roblox told investors.
The company has apparently been reimbursed for this $150 million, even though US bank deposits are normally only insured up to $250,000.
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