Palmer Luckey's Erebor Bank Adds Over $3B in Deposits, Reportedly Targets $8B Valuation

Palmer Luckey’s Erebor Bank secured over $3B in deposits and added more than 500 new clients over the last quarter. Total deposits climbed from $1.1B in March 2026 to an estimated $4.05B to $4.6B by mid-year. Research firm Sacra estimates the bank's annualized revenue grew from approximately $31M in March to $112M by July. Erebor is reportedly in discussions for new funding at an unconfirmed $8B valuation, which would nearly double its previous $4.35B mark. The federally chartered bank focuses on capital-intensive AI, defense, and manufacturing startups, explicitly supporting stablecoins alongside standard FDIC-insured accounts.