Crypto Banking Expansion Attracts $1.5B Investor Interest

• Erebor is discussing a $1.5 billion funding round at an $8 billion pre-money valuation.
• The transaction would value the crypto-friendly bank at roughly $9.5 billion after the raise.
• Deposits have already reached $4.6 billion since Erebor opened in February.
• The bank is targeting crypto, AI, defense and other capital-intensive technology companies.

The talks come only six months after Erebor began operating as a federally chartered U.S. bank, making the prospective valuation notable not simply for its size but for what it says about renewed investor appetite for banking infrastructure serving crypto and other technology sectors that conventional lenders have often treated cautiously.

The $9.5 billion figure needs one important distinction

The Financial Times reports that Erebor is negotiating the financing at an $8 billion pre-money valuation, meaning the bank is worth $8 billion before the proposed new capital is added. A completed $1.5 billion investment on those terms would imply a post-money valuation of approximately $9.5 billion.

… Continue reading the full article at the original source below.