The company had $150 million held at the recently-closed bank.
Roblox has shared that it had $150 million deposited at Silicon Valley Bank, the bank that was most recently closed by financial regulators. Still, the company assures that it will remain unaffected by the bank's collapse.
In a filing with the Securities and Exchange Commission (SEC), Roblox Corporation has revealed that as of February 28, 2023, only about 5% of its $3 billion cash and securities balance was held at SVB, which is why, according to the company, the current situation will not affect its day-to-day operations, "regardless of the ultimate outcome and the timing."
US financial regulators shut down Silicon Valley Bank on Sunday, as per Reuters. The bank's difficulties were attributed to a combination of increasing interest rates – which were raised by the Federal Reserve in an effort to control inflation – and clients withdrawing their funds.
According to The Guardian, the Federal Reserve has unveiled emergency measures to ensure that depositors such as Roblox will maintain access to their money. Additionally, banks will be allowed to borrow limitless amounts from the Federal Reserve throughout 2023, provided that the loans are backed by safe government securities.
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