Roblox Dev Had $150 Million At Failed Bank SVB, Will Get It All Back
The US government swooped in to provide funds to SVB clients after second-biggest bank failure in US history.
Roblox developer Roblox Corp. has revealed it had $150 million in cash parked at Silicon Valley Bank, the banking institution that recently folded, but the studio is not worried about a negative impact on its business. In a regulatory filing, Roblox Corp. disclosed that about 5% of its $3 billion in cash and securities was stored at Silicon Valley Bank.
"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 Corp. said.
Roblox Corp. will be just fine, and not only because its cash and assets were not stored exclusively at SVB. The Federal Reserve has announced a bailout for SVB's customers, including Roblox Corp.
FDIC-backed banks normally assure depositors up to $250,000, but the Federal Reserve and FDIC made an exception in this case and is bailing out SVB's clients.
Efforts were made to find a buyer for the bank, but they didn't materialize, leading the Federal Reserve to announce that clients at SVB would be issued their funds as a measure to prevent further bank runs, according to the AP. It was too late for one additional bank, Signature Bank, which was seized on Sunday after going belly-up. SVB and Signature Bank are now the second- and third-largest bank failures in US history.
"This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," the US government said about providing funds to SVB clients.
As for Roblox, the game is a juggernaut with about 60 million daily active players, according to the developer's latest statistics.
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