XRP News Today: Amber International Expands Crypto Reserve With Sui XRP BNB Adding 6.7% Share Decline

Amber International announced on July 3 that it will deploy new capital into Sui, XRP, and BNB as the next phase of its $100 million Crypto Ecosystem Reserve, expanding its treasury, which already holds Bitcoin, Ethereum, and Solana. The company funded the expansion with a $25.5 million private placement, pricing American Depositary Shares at $10.45, a 5% discount to the three-day volume-weighted average.

Amber International issued 12,200,915 Class A ordinary shares, equal to 2,440,183 ADSs, to investors that include Pantera Capital, CMAG Funds, Mile Green, Choco Up, and Kingkey Financial International. Management stated that the proceeds will be allocated entirely to the reserve, which supports on-chain liquidity, structured products, and grants tied to the six target networks.

CEO Wayne Huo said the reserve allows Amber Premium, the firm’s operating brand, to align with developers and liquidity venues on each blockchain while offering institutional clients broader hedging tools. The program will publish periodic on-chain attestations that detail wallet balances and transfer history.

Amber already trades and lends Bitcoin and Ethereum on OTC desks. The additional assets extend those services to participants seeking diversification beyond the two largest digital assets. Management expects the reserve to reach full deployment over several quarters, with allocation decisions based on network activity metrics and client demand patterns.

Amber International’s shares closed 6.7% lower at $8.60 on the same day the placement terms were released, leaving the company with roughly $779 million in equity value. The share move occurred as digital asset equities fell broadly and did not demonstrate a direct link to the reserve announcement. Yet, the decline in Amber shares was sharp, crashing 15% within 30 minutes after opening and one hour after the announcement that it would add other altcoins to the treasury by diluting equity.

The addition of Sui, XRP, and BNB to the $100 million reserve is a strategic move by Amber International to diversify its holdings and align with the broader digital asset ecosystem. This expansion allows the company to offer more comprehensive services to its clients, including broader hedging tools and support for on-chain liquidity and structured products.

The decision to issue new shares at a discount to fund this expansion indicates a strong commitment to growing the reserve and supporting the targeted networks. The periodic on-chain attestations will provide transparency and build trust with stakeholders, ensuring that the reserve is being managed responsibly.

While the market reaction to the announcement was negative, with shares falling 6.7%, it is important to note that this decline was part of a broader downturn in digital asset equities. The sharp initial drop in Amber's shares suggests that investors may have been caught off guard by the dilution of equity, but the long-term benefits of the reserve expansion could outweigh this short-term impact.

Overall, Amber International's move to expand its Crypto Ecosystem Reserve with the addition of Sui, XRP, and BNB is a significant development in the digital asset space. It demonstrates the company's commitment to innovation and its willingness to adapt to the evolving needs of the market. As the reserve reaches full deployment, it will be interesting to see how this strategy plays out and whether it delivers the expected benefits to both the company and its clients.