Cryptocurrency-friendly bank Erebor Bank plans to raise a new round of financing with a valuation of at least $8 billion

According to Bloomberg, Erebor Bank, founded by Palmer Luckey, is negotiating a new round of financing with investors, aiming for a valuation of at least $8 billion, nearly doubling from last year's valuation of $4.35 billion.

Insiders say that the bank's deposits have increased from $1.1 billion to $4.05 billion over the past three months, with nearly 400 new clients, and it is expected to achieve profitability within the year. Erebor focuses on serving companies in sectors such as defense technology and cryptocurrency, and has obtained a national bank charter from the Office of the Comptroller of the Currency.

Previously, its investors included Lux Capital, 8VC, Andreessen Horowitz, and Founders Fund. Erebor has also signed a non-binding letter of intent with Venezuela's Banco de Venezuela to provide agency services.