Tiger Brokers Secures $90 Million from Selling Convertible Notes

Nasdaq-listed UP Fintech (Nasdaq: TIGR), the operator of the global brokerage platform, Tiger Brokers, announced on Monday that it is raising fresh $90 million by selling convertible notes to institutional investors.

The convertible note, which will mature in 2026, was already subscribed to be purchased by the investors in a private placement. However, the public company did not specify the identity of its new investors yet.

Headquartered in China, Tiger Brokers is a major brokerage platform with services around the world. The broker is operational in Europe and the Asia-Pacific region, but its key markets remanded China, Singapore and New Zealand.

Brokerage Business Is Booming

The funding came at a time when the broker is witnessing a landslide demand for its services, especially after the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term-spurred market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term early last year. The Singapore unit of the broker, which was opened last year, reported a 215 percent increase in trading volume in the last quarter of 2020.

The overall business of Tiger Broker pivoted last year due to the demand surge. Last month, UP Fintech reported a year-over-year revenue jump of 135 percent to $47.2 million in the last quarter of 2020. In addition, the broker earned a net of $9.4 million in the quarter, recovering from the losses it incurred in the same quarter the previous year.

Though the company did not reveal its plans of how it will utilize the fresh proceeds, it is likely that it will use the funds in geographical and product line expansion.

The publicly-traded stock prices of the company slid heavily from the peak it achieved in February. Although, there are some signs of recovery in the prices.