Roku Reveals $487 Million In Cash Is Held At Shuttered Silicon Valley Bank
Roku Inc (NASDAQ: ROKU) evidently is one of the depositors impacted by the implosion of Silicon Valley Bank (NASDAQ: SIVB), which today saw its operations shuttered by the California Department of Financial Protect and Innovation.
The company in a Form 8-K filing this evening indicated that it had approximately $487 million in cash held at Silicon Valley Bank. The figure equates to roughly 26% of the firms total cash and cash equivalent balance of $1.9 billion as of the market close today. The remaining $1.4 billion is said to be distributed “across multiple large financial institutions.”
The Federal Deposit Insurance Corporation, or FDIC, insures depositors up to $250,000. The remainder as a result is uninsured, and it is unclear at this time how much will be recoverable. Roku as such has indicated that it “does not know to what extent the Company will be able to recover its cash on deposit at SVB.”
Roku meanwhile believes that its existing cash and cash equivalents will be sufficient to meet working capital, capital expenditures, and material cash requirements for its operations for the next twelve months and beyond.
Information for this briefing was found via Edgar, FDIC, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
