Amber Group, a digital currency firm founded by ex-Morgan Stanley traders, has raised $100 million at a $1 billion value, making it a unicorn.
To arbitrage the huge price swings in digital currencies, the Hong Kong-based company utilizes algorithmic trading, which is usually utilized by Wall Street corporations investing in stocks and indices.
Amber generates money via loan and trading fees and provides a spectrum of services to institutional and individual clients, such as trading and asset management.
Amber is profitable, despite bitcoin’s 40% drop since April, and expects to generate $500 million in sales by the end of 2021. China Renaissance led the new round of funding, which also included Tiger Global Management, DCM Ventures, and Coinbase’s venture capital arm.
“Both trading and financial services should be more tech driven and more automated,” Amber Group CEO Michael Wu said in a press release “The strategy we do with Amber is always quantitative.”
Amber Group was founded in 2018 by Wu, four Morgan Stanley employees, and a Bloomberg LP developer. Since the outset, the co-creator’ approach has been lucrative.
They earned $28 million at a $100 million value in early 2020. Since then, the firm has profited as digital currencies have gained traction and fluctuated dramatically.
Amber today employs over 300 people and manages $1.5 billion in assets, and it is considering acquisitions to broaden its reach. Despite this, the firm is aware of the challenges ahead, particularly those it faces from regulation.
“I think regulation is always a challenge for this industry because it’s a very global industry,” Wu noted. “It’s always about staying ahead, or at least staying aware of the different regulation.”