Erebor Bank, founded by Palmer Luckey, is in discussions with investors for a new funding round, aiming for a valuation of at least $8 billion, according to Bloomberg. This marks a significant increase from its $4.35 billion valuation at the end of last year. The bank's deposits have surged from $1.1 billion to $4.05 billion in the past three months, with nearly 400 new clients added. Erebor Bank, which serves sectors like defense technology and cryptocurrency, expects to achieve profitability within the year. The bank has secured a national bank charter from the U.S. Office of the Comptroller of the Currency and counts Lux Capital, 8VC, Andreessen Horowitz, and Founders Fund among its investors. Additionally, Erebor has signed a non-binding letter of intent with Banco de Venezuela to offer correspondent banking services.