Tech billionaire Peter Thiel, alongside Palmer Luckey and Joe Lonsdale, is leading the charge to establish Erebor, a new financial institution designed to serve startups and crypto firms—the very sectors left adrift after Silicon Valley Bank (SVB) collapsed in 2023.
Erebor: A New Bank for Crypto and High-Risk Startups
The proposed Erebor Bank, named after the legendary dwarven stronghold in Lord of the Rings, is being positioned as a modern alternative to SVB, aiming to bank venture-backed tech, life sciences, and crypto companies. The group has reportedly filed for a bank charter in the United States, signaling a serious intent to enter the banking sector.
Before its collapse, SVB serviced nearly 50% of all venture-backed startups in the U.S.
Since its downfall, no single institution has stepped up to serve that niche—until now. Thiel, a vocal Bitcoin advocate, has backed crypto ventures like Bullish, and his move into banking suggests a deeper bet on the future of digital assets and innovation financing.
Circuit Launches Crypto Recovery System for Institutions
As more institutions hold crypto assets, asset recovery is becoming a critical risk management requirement. To meet this need, Circuit has launched an enterprise-grade crypto recovery solution, leveraging Automatic Asset Extraction (AAE) technology.
Circuit’s system, now in use by UAE-based custodian Tungsten and infrastructure firm Palisade, helps prevent catastrophic losses due to misplaced or inaccessible wallets.
“Institutions view asset recovery as a fundamental requirement, not a nice-to-have,” said Circuit CEO Harry Donnelly.
The launch is timely—analysts estimate that 11% to 18% of Bitcoin’s total supply may already be lost forever, underscoring the growing need for robust digital asset recovery tools.
Strategy Poised for $13B Bitcoin Gain in Q2
Meanwhile, Strategy, the Bitcoin-heavy business intelligence firm led by Michael Saylor, is set to post $13 billion in unrealized BTC gains in Q2 2025. The firm holds 597,325 BTC, and recently added another $531 million worth of Bitcoin to its treasury.
Strategy’s BTC holdings delivered a 7.8% yield in Q2, while its core software business revenue is projected to dip to $112.8 million, highlighting the firm’s shift to a crypto-centric model.
Over 250 companies now hold BTC on their balance sheets, with 26 firms adopting Bitcoin treasury strategies in June alone.
Outlook
From Erebor’s banking ambitions to Circuit’s asset recovery innovation and Strategy’s BTC-driven growth, the crypto industry is attracting bold institutional moves. As traditional finance continues to evolve, crypto-native strategies and infrastructure are taking center stage in the next phase of financial innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.