Amber International announced the completion of a $25.5 million private placement backed by major investors. The funds will go to supporting the firm’s $100 million crypto reserve target.
On July 3, the Singaporean-based firm has managed to reach more than a quarter of its initial goal to establish a diversified crypto reserve fund worth $100 million. The private placement was valued at $10.45 per share, deducted from a 5% discount to the company’s three-day volume weighted average trading price.
According to the filing document, the capital raised from the private placement will be used to boost its crypto reserve strategy. The company aims to raise as much as $100 million to establish a crypto treasury filled with major tokens including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).
Through the notice, Amber International also announced its plans to explore potentially adopting other alternative tokens such as Binance Coin (BNB), Ripple (XRP) and Sui (SUI) overtime.
As per the announcement, Amber International issued more than 12 million Class A ordinary shares which is equal to approximately 2.44 million American Depositary Share on the Nasdaq stock exchange.
The private placement garnered support from a number of institutional players, including CMAG Funds, Mile Green, Pantera Capital, Choco Up, Kingkey Financial International among others.
More often than not, when a company publishes a notice about raised capital that will go towards supporting its crypto reserves, the company stock experiences a surge. The same can be said about Amber International.
At press time, Amber International’s stock managed to see modest gains of 0.12%, rising from its previous closed market price at $8.60. Earlier today, the stock experienced a sharp spike, bounding up to as high as $9.56. However the peak was short lived as it took a nosedive down to $8.40.
Most recently, Spain’s Vanadi Coffee and Swedish gaming firm Fragbite Group enjoyed highs in its stock price after announcing that its shareholders have decided to add crypto to the company balance sheets.
In recent months, there have been an increasing number of companies worldwide adopting crypto reserve strategies, many of them citing Michael Saylor’s Strategy as inspiration. While others have called it an attempt to hedge inflation or as a starting point in their venture into the web3 business.
