Cryptocurrency Startup Amber Group Reaches $1B Valuation Even as Bitcoin, Others Continue to Falter

Ljubljana, Slovenia - may 14 Bitcoin and alt coins cryptocurrency close up shoot.
dulezidar / Getty Images

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.

See: The ‘Sunday Effect’ Sends Crypto Crashing on Weekends – Which Means It Might Never Go Mainstream
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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.

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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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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

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