Copper Attracts Buyer Interest at $200M Valuation

March 19, 2025 — Crypto custody firm Copper has received two or three acquisition offers at approximately $200 million, according to a source familiar with the matter. The London-based company, once valued at $2.5 billion during the 2021 bull market, was being marketed by investment bank Cantor Fitzgerald at around $500 million just months ago.

Immediate Details & Direct Quotes

Copper, known for its institution-focused ClearLoop trading system, is now drawing interest from potential buyers at a price tag significantly below expectations. The company, which operates a Swiss entity alongside its London headquarters, has seen its valuation plummet amid the prolonged bear market.

The firm previously raised over $300 million in venture funding at a high valuation. However, the current market conditions have created challenges related to preferred stock—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, according to a person familiar with the situation.

Copper did not respond to requests for comment. Cantor Fitzgerald declined to comment on the ongoing sale process.

The drastic reduction in asking price reflects broader market trends, with firms that once touted billion-dollar valuations now available for an order of magnitude less.

Market Context & Reaction

As of today’s reporting, Copper’s valuation decline mirrors a wider correction across the crypto sector. The company closed its enterprise custody business in 2023 to focus entirely on ClearLoop, an institutional settlement system enabling network participants to execute delivery versus payment transactions from within custody without bringing assets on-chain, eliminating settlement risk.

Copper reports more than 1,000 active counterparties and over $50 billion in monthly notional trading volume, according to its website. Despite these operational metrics, the company’s valuation has suffered in the current market environment.

The crypto custody firm was reportedly weighing an initial public offering 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 have declined more than 60% since its public debut, highlighting the challenging market conditions for crypto-related companies.

Background & Historical Context

Copper’s journey reflects the dramatic shift in crypto market valuations. During the 2021 bull market, the company achieved a peak valuation of $2.5 billion, attracting significant venture capital investment. The firm positioned itself as a leading institutional custody solution, focusing on secure storage and settlement infrastructure.

The company’s pivot to ClearLoop in 2023 represented a strategic shift toward settlement technology rather than traditional custody services. This transition aimed to capture institutional demand for efficient trading solutions while addressing settlement risk concerns.

The current sale process, managed by Cantor Fitzgerald, began with expectations of a $500 million valuation in May of this year. The emergence of offers at roughly $200 million—less than half that figure—underscores the significant devaluation affecting crypto infrastructure companies during the ongoing bear market.

What This Means

For the crypto custody sector, Copper’s situation highlights the challenging fundraising and exit environment. Companies that raised capital at peak valuations now face difficult decisions about accepting lower offers or continuing to operate independently.

The anticipated acquisition could signal consolidation within the institutional crypto infrastructure space. Potential buyers may see value in Copper’s ClearLoop technology and its network of over 1,000 active counterparties despite the reduced valuation.

The outcome of this sale process may serve as a benchmark for other crypto companies considering strategic options. With Bitgo’s share performance already concerning and Copper’s valuation declining, institutional crypto companies face pressure to demonstrate sustainable revenue models.

Market observers will watch whether the acquisition completes at the current offer levels or if negotiations result in revised terms. The transaction’s final price could influence how other crypto infrastructure firms approach valuation expectations in the current market cycle.

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