Copper Valuation Drops to $200 Million, Once Reached $2.5 Billion

Copper, a cryptocurrency custody company, is attracting potential buyers, but offers are significantly below its previous sale price of around $500 million. Currently, there are two to three bids, with prices around $200 million. Copper is headquartered in London and operates a Swiss entity, with its ClearLoop trading system primarily targeting institutional clients. The company reached a peak valuation of approximately $2.5 billion during the bull market in 2021 and has raised over $300 million in total funding. Cantor Fitzgerald sought buyers for Copper earlier this May at a price of about $500 million. According to insiders, the preferred stock structure resulting from Copper's high valuation financing poses challenges for the deal, as preferred shareholders have priority over common shareholders in asset distribution and returns. Copper closed its corporate custody business in 2023 to focus on ClearLoop, which currently has over 1,000 active counterparties and a monthly nominal trading volume exceeding $50 billion. Earlier this year, Copper was also reported to be considering an IPO.

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