Amber International has announced the completion of a $25.5 million private placement to support the establishment of a $100 million crypto reserve.
Objectives of the Equity Placement
On July 3, 2023, Singapore-based Amber International announced the completion of a private placement of over 12 million Class A shares. Each share was priced at $10.45, representing a 5% discount from the company’s three-day volume-weighted average trading price.
Crypto Reserve Strategy
The capital raised will be utilized to bolster the company’s crypto reserve strategy. Amber International aims to construct a reserve fund worth up to $100 million, which will include major tokens like Bitcoin, Ethereum, and Solana. The firm also plans to explore the possibility of adopting other alternative tokens such as Binance Coin and Ripple in the future.
Market Response and Shareholder Reaction
The equity placement attracted support from several institutional investors, including CMAG Funds and Pantera Capital. Following the announcement, Amber International’s stock exhibited modest fluctuations, peaking at $9.56 before declining to $8.40.
Amber International is progressing towards the establishment of its crypto reserves, following the lead of other companies adopting similar strategies in their financial models.
