Coin base-secured cryptocurrency financial services company Amber Group raises $ 1 billion in funds to provide investors with a wide variety of cryptocurrency products for investment.
The latest round of funding continues cryptocurrency activities in the cryptocurrency sector. The funding was led by a well-known investment in China Renaissance. In addition to Coinbase, other investors include Tiger Global Management, headquartered in New York. Amber Group has raised $ 100 million ahead of this round of funding as investors rush to support companies in the industry.
This Hong Kong-based cryptocurrency financial services startup noted that the new funds raised this time will be used for strategic acquisitions such as cybersecurity. To ensure regulatory safety and compliance, procurement objectives focus primarily on companies with regulatory licenses in certain jurisdictions.
Amber Group CEO Michael Wu said:
“I think regulation is always a challenge for this industry because it’s a very global industry. It’s always about staying ahead or at least staying aware of different regulations. We always take it very conservatively.”
According to the CEO, the new capital raised would be used for “more aggressive hiring” and strategic acquisitions in areas such as cybersecurity.
According to PitchBook, venture capital investments in cryptocurrency and blockchain startups during the second quarter of this year were about $ 14 billion, compared to $ 600 million in the same period last year.
With the participation of institutional investors and large corporations, both ordinary investors and institutional investors have increased their interest in cryptocurrencies, particularly Bitcoin, this year.
Amber Group’s turnover comes mainly from the so-called net interest margin, which is a measure of the profitability of lending, to generate profits that take up 70% to 80%. The main model is to accept customer deposits and offer deposit rates and then lend funds to other entities with a higher interest rate. About 15% of net sales come from transaction fees.
Amber Group CEO Michael Wu said the company will bring “a private banking experience to the everyday customer.”
The Group’s current main service targets are primarily institutional investors and wealthy people who offer products, including services such as algorithm trading and lending products. In addition, the company seeks to gain individual investor customers. And it is expected to reach $ 500 million in revenue by the end of this year.
Wu noted that:
“We are not in favor of hard speculation or high leverage, but we want our clients to be longer-term, to focus on risk management and to have a stable and attractive return.”
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