Cryptocurrency Startup Amber Group Reaches $1B Valuation Even as Bitcoin, Others Continue to Falter
While Bitcoin and other cryptocurrencies had another wild ride over the weekend, at least one company proved that plenty of investors are still willing to bet heavily on the global crypto market.
That company — Amber Group, a Hong Kong-based provider of cryptocurrency financial services — raised $100 million in a new round of funding, bringing the startup’s valuation to $1 billion, CNBC reported on Sunday. The round was led by investment bank China Renaissance and also included New York-based investment firm Tiger Global Management and Coinbase’s venture capital arm.
The latest round continued a recent flurry of funding activity in the crypto market. Venture capital investment into cryptocurrency and blockchain startups has already totaled $14 billion this quarter, according to data provided to CNBC by PitchBook. That’s up from $600 million in the same period last year.
Institutional investors have poured money into Bitcoin and other cryptocurrencies amid a broader move by mainstream corporations to enter the space. High-profile companies that have purchased Bitcoin include electric vehicle maker Tesla and payments processor Square.
Amber Group sells algorithmic trading, lending and cryptocurrency products to institutional investors and wealthy individuals. CEO Michael Wu told CNBC the company aims to bring a “private banking experience to every day customer[s].” Amber Group is on track to book revenue of $500 million by the end of this year and has been profitable “since inception,” Wu said.
Meanwhile, volatility in the market continues amid rising concern over China’s expanding crackdown on Bitcoin mining, Reuters reported. Bitcoin fell nearly 10% to $32,094 early Monday — its lowest point in nearly two weeks — and dragged smaller coins down with it.
Bitcoin, the world’s biggest cryptocurrency, is down more than 20% in the last six days, and it’s down by half from its April peak of nearly $65,000. For the year, however, Bitcoin is still up more than 10%.
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