Crypto-Friendly Erebor Bank’s Valuation Could Reach $9.5 Billion: Deposits Quadruple in Four Months

Crypto-friendly Erebor Bank is in talks to raise approximately $1.5 billion in investment and increase its valuation to $9.5 billion.

According to information reported by the Financial Times (FT), the tech-focused bank, which is only a year old, is continuing advanced negotiations for its investment round. Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz (a16z), and SV Angel are preparing to make significant investments in the round. Existing investors 8VC and Haun Ventures will also participate in the new funding round.

The valuation in question is approximately double the $4.35 billion level at which Erebor received investment at the beginning of the year. The bank’s deposits also signaled rapid growth, rising from $1.1 billion at the end of March to $4.6 billion at the end of July.

Erebor’s deposits quadrupled in four months

Erebor provides services to companies operating in the cryptocurrency, artificial intelligence, defense, and manufacturing sectors. The bank’s target audience also includes payment companies, investment funds, and trading firms. Planned services include deposits, loans, stablecoin products, treasury management, and payments.

The bank, which received final approval to operate in the US in February, must maintain a leverage ratio of at least 12% for the first three years. Given the growing balance sheet, this requirement makes new capital strategically important. It was noted that as part of its lending activities, Erebor provided a $200 million credit facility to nuclear energy startup Valar Atomics, working with JPMorgan, Crescent Cove, and Hercules Capital in the transaction.