• Amber Group, a cryptocurrency firm, has received a $100 million funding round, elevating it to unicorn status

  • Amber Group, a crypto financial services startup, has raised $100 million in a Series B round of funding, valuing the company at $1 billion.

    Amber Group, a bitcoin financial services startup based in Hong Kong, has secured $100 million in a Series B round headed by China Renaissance.

    Tiger Global Management, DCM Venture, and current investors Coinbase and Pantera Capital were among the high-profile backers in the round, which saw Amber Group achieve unicorn status with a pre-money valuation of $1 billion.

    The latest valuation is 10 times more than the startup’s Series A funding round of $28 million in February 2020.

    Amber Group is based in Hong Kong, Taipei, Seoul, and Vancouver, and was founded by a group of former Morgan Stanley traders. The firm intends to use the additional funds to hire more employees and expand its geographic reach around the world.

    Amber Group began by developing a platform that used machine learning algorithms to perform quantitative trading. When the price of Bitcoin topped $20,000 for the first time in 2017, the firm shifted its focus to digital assets, causing the overall market to grow.

    Amber Group currently serves about 500 institutional and high-net-worth clients, providing them with a variety of services including algorithmic and high-frequency trading, electronic execution, over-the-counter (OTC) trading, and loans. Bitcoin (BTC) and Ethereum (ETH) are supported, as well as stablecoins like Tether’s USDT and Circle’s USDC.

    Rather than allowing consumers to trade on their own, the startup acts as a trading manager, taking on their deposits in exchange for an interest rate. The firm manages around $1.5 billion in assets, according to the firm.

    According to Amber Group CEO Michael Wu, the firm’s total trading volumes have increased from $250 billion to over $500 billion since the beginning of the year.

    Tiantian Kullander, the company’s chief financial officer, states that the company has been profitable since the beginning, with a net margin of more than 60%. This, he claims, is attributable to Amber Group’s market strategy of trading on bitcoin volatility rather than simply buying falls and selling at higher levels.

    Amber Group is the second cryptocurrency to reach “unicorn” status in the last few weeks.

    Ledger, a French crypto hardware wallet manufacturer, raised $380 million in a Series C financing round earlier this month, valuing the business at over $1.5 billion.

    What's your reaction?