Erebor Bank, the federally chartered digital bank backed by Palmer Luckey and billionaire investor Peter Thiel, is reportedly seeking fresh funding at a valuation of at least $8 billion, following growth in deposits and institutional banking activity. According to a Bloomberg report, the fundraising discussions remain in their early stages, but the proposed valuation would nearly double the $4.35 billion level Erebor secured during its previous financing round late last year. Neither the valuation nor the fundraising has been finalized, and a spokesperson for Erebor declined to comment on the discussions. Deposits nearly quadruple in three months The reported fundraising comes as Erebor continues expanding its balance sheet at a rapid pace. According to people familiar with the company’s financials, deposits have risen from $1.1 billion at the end of March to approximately $4.05 billion, representing nearly a fourfold increase within a single quarter. The bank has also reportedly added nearly 400 new customers over the same period and expects to become profitable before the end of 2026. Despite Erebor’s close ties to Silicon Valley’s defense technology ecosystem, founder Palmer Luc