XRP Boosts Amber Reserve Amid 6.7% Share Drop

XRP has become a pivotal component in Amber International’s evolving crypto strategy, as the company recently expanded its $100 million reserve to include the token alongside Sui and BNB. This move, however, coincided with a rapid dip in Amber’s share value, highlighting investor sensitivity to equity dilution and market sentiment shifts.

On July 3, Amber International made headlines with the announcement that it would incorporate Sui, XRP, and BNB into its crypto treasury, a strategic reserve initially focused on holding large-cap digital assets such as Bitcoin, Ethereum, and Solana. The inclusion of XRP marks a significant pivot toward expanding on-chain liquidity and utility within Amber’s operational footprint.

This initiative is being financed through a $25.5 million private placement, pricing American Depositary Shares (ADS) at $10.45—representing a 5% markdown from the average trading volume over three days. This funding round led to the issuance of over 12 million Class A ordinary shares or approximately 2.4 million ADS units. Key backers of this placement include Pantera Capital, CMAG Funds, Choco Up, Mile Green, and Kingkey Financial International.

All funds raised are being allocated to Amber’s Crypto Ecosystem Reserve, which supports various DeFi functions such as liquidity provisioning, structured finance tools, and blockchain-based grants. The addition of XRP is expected to add significant versatility due to its global use case in cross-border payments and institutional finance.

According to CEO Wayne Huo, the expanded reserve aims to integrate Amber Premium, the firm’s operating division, more closely with decentralized development teams across these six networks. This alignment is designed to provide institutional clients with more diversified on-chain financial instruments and broader hedging mechanisms.

Amber further emphasized transparency with plans to deliver routine on-chain attestations that disclose wallet balances and transactional activity. Historically, the company has facilitated over-the-counter (OTC) trading and lending services in Bitcoin and Ethereum. The move to expand into assets like XRP widens these offerings, catering to investors seeking access to alternative high-utility tokens.

The full deployment of the reserve will unfold in phases across several quarters, guided by network metrics and client interest. For XRP, this addition could drive increased liquidity and utility, particularly as institutions look to diversify beyond legacy assets like BTC and ETH.

Despite the long-term ambitions of the reserve strategy, the immediate market reaction was less favorable. Amber International’s stock value quickly fell 15% within 30 minutes of trading after the announcement and ultimately closed 6.7% lower at $8.60 on Nasdaq. This resulted in a total market capitalization of approximately $779 million.

Curiously, analysts have yet to establish a direct correlation between the asset inclusion and the share price plunge. Other major digital asset equities like Riot Platforms and Coinbase also faced downward pressure during the same trading session, hinting at a broader market trend rather than a strategic misfire.

Still, the market’s initial skepticism underscores the complexity of investor sentiment when crypto firms extend reserves through equity dilution. While XRP may offer increasing utility, shareholders appear cautious about short-term impacts on share value.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, Amber International’s decision to include XRP in its $100 million reserve fund signals growing institutional confidence in the digital asset’s long-term viability. The short-term share decline reflects portfolio repositioning in response to expanded crypto exposure, highlighting the delicate balance between innovation and investor assurance.