Cryptocurrency firm Amber Group hits $1 billion valuation after fresh funding

Hong Kong-based cryptocurrency financial services firm Amber Group raised $100 million to push its valuation to $1 billion.

Investment bank China Renaissance led the funding round with participation from such high-profile investors as New York-based Tiger Global Management. Existing investors include Coinbase’s venture arm.

Amber Group sells products to institutional investors and wealthy individuals, bringing a “private banking experience" offers investors several cryptocurrency products to invest in.

According to Amber Group CEO Michael Wu, 70 to 80 percent of Amber's revenue comes from net interest margin while about 15 percent from trading fees.

The company is on track to book revenue of $500 million this year and has been profitable “since inception.”

In the second quarter of 2021, venture capital investment into cryptocurrency and blockchain start-ups totaled $14 billion, soaring from the $600 million in the same period last year.

While interest in bitcoin, rose this year as institutional investors and large corporations jumped in, causing it to reach a record high of $64,829.14 in April, it has plunged by nearly half.