In recent days, a slew of companies within the financials and cryptocurrency sectors have disclosed their (largely modest) exposure to failed lenders Silicon Valley Bank ( SIVB ) and Signature Bank ( SBNY ), as market participants digest federal regulators' actions to stem the damage from the bank collapses. Bear in mind, though, that the U.S. government had said all depositors of venture capital-linked SVB, which was officially closed on Friday, will gain access to their funds on Monday. SBNY was shuttered just two days after SVB, spurring the Federal Reserve to create a new lending facility for banks to support their liquidity. Financials: Payoneer Global ( NASDAQ: PAYO ), a provider of cloud-based software for financial operations, said it held $20M of its $6.4B cash pile at SVB, as of Dec. 31, 2022, through a combination of cash deposits and money market funds purchased via SVB but managed by a third party asset manager, it said in a recent SEC filing. Financial automation software provider Bill Holdings ( NYSE: BILL ) disclosed that around $300M of its $2.6B of corporate cash is held at SVB, warning "it is unclear how much of this cash will be unrecoverable" as a large portion of the corporate deposits are uninsured. In addition, $370M of its cash held in trust on behalf of customers stood were parked at SVB, it said, while noting "a significant portion will ultimately be recoverable." Insurtech firm Root, Inc. ( NASDAQ: ROOT ) reported that it maintains ~$1.3M on deposit with SVB, calling it an "immaterial" amount of cash relative to its overall cash position. SoFi Technologies ( NASDAQ: SOFI ), known for refinancing student loans, said it does not hold assets with SVB, though it has a ~$40M lending facility that is provided via SVB. Digital marketplace bank LendingClub ( NYSE: LC ) has $21M deposited at SVB, it said in an SEC filing, compared with its $8B of total assets as of Feb. 28. Lemonade ( NYSE: LMND ), another insurtech, said just $7K in cash was held at SVB. Other financial firms that are seeking to capitalize on the failure of SVB and SBNY include Hercules Capital ( NYSE: HTGC ), which has " earmarked up to $50 million of capital to provide select companies in our ecosystem with secured short-term financing to be able to meet payroll and other related obligations as a result of the closure of SVB,” said Scott Bluestein, the business development company's CEO and chief investment officer. John Marshall Bancorp ( NASDAQ: JMSB ), which serves small to medium-sized businesses, also said it's prepared to get new business from SVB customers. Crypto-related companies: Bitcoin ( BTC-USD ) miner Marathon Digital Holdings ( NASDAQ: MARA ) said Monday it held some $142M of cash deposits at Signature Bridge Bank ( SBNY ) and has access to its funds for treasury management purposes. It has no direct business ties to SVB. Crypto exchange Coinbase Global ( NASDAQ: COIN ) said Sunday it had a cash balance of ~$240M at Signature Bank as of Friday, all of which are expected to be recovered. Ripple Labs CEO Brad Garlinghouse took to Twitter noting the crypto company has " some exposure" to SVB without mentioning how much capital is held at the bank. We expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.” Seeking Alpha contributor Stock Info thinks JPMorgan ( JPM ) preferred shares could be a good pick for risk-averse investors "as they may act like a bankruptcy canary."
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