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Copper, the cryptocurrency custody firm that was once valued at as much as $2.5 billion, is attracting interest from potential buyers, but at a price tag way below the $500 million Cantor Fitzgerald was marketing the firm at only a few months ago, according to three people with knowledge of the matter.
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.
Copper closed its enterprise custody business in 2023 to focus on ClearLoop, an institutionally focused settlement system that enables network participants to execute delivery versus payment (DvP) from within custody without bringing assets onchain, thereby eliminating settlement risk.
The firm boasts more than 1,000 active counterparties and over $50 billion in monthly notional trading volume, according to its website.
The crypto custody player was said to be weighing an IPO earlier this year, potentially following in the footsteps of crypto custodian Bitgo, with whom Copper forged a partnership on the ClearLoop application. Bitgo’s shares are currently down more than 60% since its public debut.
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Source: cryptonews.net