Crypto custody firm Copper has potential buyers. But offers are way below its $500 million asking price
Crypto custody firm Copper is receiving acquisition offers significantly lower than its previous $500 million valuation. The company is currently pivoting its focus toward its institutional settlement system, ClearLoop, amid a broader market downturn.
Why it matters
The valuation struggle of major crypto infrastructure firms reflects the cooling of venture capital interest and the maturation of the digital asset market.
The London-based company, which also operates a Swiss entity and is known for its institution-focused ClearLoop trading system, has two or three offers at around $200 million, according to one of the people who spoke on the condition of anonymity.
Copper did not respond to requests for comment. Cantor Fitzgerald declined to comment.
While its previous valuation in the billions came during the 2021 bull market, given the recent bear market, it’s not surprising to see Copper and other crypto companies trading at much lower valuations.
Having raised over $300 million in venture funding at a high valuation, the firm faces challenges related to preferred stock, according to a third person familiar with the situation. This refers to a hybrid form of corporate equity that gives investors a higher claim on a company’s assets and fixed dividends before common stockholders are paid.
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