Here Are The Crypto Companies Impacted By Silicon Valley Bank’s Collapse• March 12, 2023 8:21 am • Comments
Many crypto companies have already communicated with their holders that they were in some way impacted by the current Silicon Valley Bank collapse.
The most notable crypto company affected by the bank’s fall was Circle the company behind the stablecoin USDC.
Other companies that were impacted were BlockFi, Pantera, Avalanche, Yuga Labs, and Proof.
This list is continuing to grow as some crypto companies have yet to disclose whether they had reserves stored at SVB or not.
In light of recent news, we would like to confirm that the Avalanche Foundation has no exposure to Silvergate and a little over $1.6mm of exposure to Silicon Valley Bank. Avalanche Foundation is saddened by the news about SI and SIVB, and hope that all depositors are made whole.
— Avalanche 🔺 (@avalancheavax) March 10, 2023
2/5: In the spirit of transparency, here’s everything we know about the situation with SVB:
Proof holds cash at SVB, however…
We’ve thankfully diversified our assets across ETH, stablecoins, as well as fiat—so financially and operationally, we’re going to be OK.
— PROOF (🥃,🦉) (@proof_xyz) March 10, 2023
Here’s the list in full detail provided by Crypto Slate:
Failed crypto lender BlockFi, which filed for bankruptcy in November in the wake of FTX’s collapse, has $227 million in funds held at SVB, according to documents filed Friday related to BlockFi’s bankruptcy proceedings. Those funds are reportedly not insured by the Federal Deposit Insurance Commission (FDIC) as they are in a money market mutual fund, which itself may constitute a violation of bankruptcy law.
BlockFi first halted withdrawals just days after the implosion of crypto exchange FTX. The lender had previously been bailed out by FTX with a revolving $250 million line of credit, last June. Circle, issuer of the world’s second-largest stablecoin USDC, announced on Friday that some undisclosed portion of the cash reserves used to back USDC and tie its value to the US dollar were held at Silicon Valley Bank.
The company said in a statement Friday that SVB was one of six banks relied on to manage USDC’s cash reserves, but claims USDC will be able to continue operating normally.
Stablecoins like USDC are cryptocurrencies backed by and pegged to the value of real-world assets. They are meant to serve as a sturdy intermediary between traditional finance and more volatile crypto markets; USDC, with a market capitalization of $42.17 billion, is the second-most used stablecoin in the world. 25% of the assets backing USDC, which purports to be fully collateralized, are cash, according to Circle. Crypto-focused venture capital firm Pantera may have an unknown amount of exposure to SVB’s collapse. As recently as last month, the firm counted the failed bank among just three custodians of its private funds, according to a February 3 SEC filing.
The Avalanche Foundation, which supports the Avalanche blockchain, announced Friday evening that it has “a little over” $1.6 million in exposure to Silicon Valley Bank.
Yuga Labs, the $4 billion company behind dominant NFT collection Bored Ape Yacht Club (among other projects), is exposed to SVB. Yuga co-founder Greg Solano said Friday that the company has “super limited exposure” to the failed bank, though Yuga has not yet confirmed exactly how much.
Solano said the amount “doesn’t impact our business or plans in any way.”
Proof, another leader in NFTs, may have been hit harder. The Web3 project created by Digg co-founder Kevin Rose, which is behind leading NFT collection Moonbirds, issued a statement Friday confirming the company holds cash as Silicon Valley Bank.
“Proof holds cash at SVB, however… We’ve thankfully diversified our assets across ETH, stablecoins, as well as fiat,” the company Tweeted Friday.
Circle #USDC says it will cover any missing liquidity in Silicon Valley Bank using corporate funds. pic.twitter.com/mXDEksctiC
— Technical Crypto Analyst (@TechCryptoAnlst) March 12, 2023
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