Copper Draws $200M Offers 92% Below Its Peak Valuation

Copper is drawing two or three potential offers at about $200 million, far below the roughly $500 million price at which Cantor Fitzgerald marketed the London-based crypto custody firm in May. The proposed valuation is also about 92% below Copper's peak valuation of $2.5 billion during the 2021 bull market.

The gap reflects a broad reset in private crypto valuations after depressed market conditions exposed a sharp divide between previous fundraising marks and current buyer expectations. Copper has raised more than $300 million in venture funding, and its preferred-stock structure could complicate negotiations because those investors hold stronger claims on the company's assets and dividends than common shareholders.

Why it matters

Copper's situation shows that fundraising valuations do not guarantee comparable prices in a sale. A buyer would need to assess the company's current operations rather than its earlier venture capital mark, while existing investors may face outcomes below their original expectations.

Copper shifted away from its enterprise custody business in 2023 and now emphasizes ClearLoop, an institutional settlement network that supports delivery-versus-payment activity while assets remain in custody. It reports more than 1,000 active counterparties and over $50 billion in monthly notional trading volume.

Market impact

The proposed offers would value Copper at 40% of its latest marketing price and at one-twelfth of its former peak valuation. That reset could influence other private crypto companies as investors increasingly distinguish operating scale from outdated funding benchmarks.

Copper was also weighing an IPO earlier this year. The discount being sought by potential buyers may strengthen the case for a public listing, but unresolved preferred-stock terms and the gap between buyer and seller expectations remain central to any transaction.