Crypto custody and infrastructure company Copper is reportedly attracting potential buyers, but the offers currently on the table are significantly below the roughly $500 million valuation previously sought for the company.
According to people familiar with the matter, Copper has received two or three offers valued at around $200 million. That would represent a substantial discount to the price at which investment bank Cantor Fitzgerald was reportedly marketing the company earlier this year.
The development highlights the changing valuation environment for crypto infrastructure companies and comes after Copper was once valued at as much as $2.5 billion during the 2021 crypto bull market.
Copper's valuation has fallen sharply
Copper was previously one of the better-known institutional crypto infrastructure companies, attracting more than $300 million in venture funding at relatively high valuations.
The company is now exploring a potential sale at a much lower valuation.
The reported offers of approximately $200 million are less than half of the $500 million asking price discussed earlier this year.
The difference reflects the broader repricing of crypto companies since the previous market cycle. Companies that once attracted multibillion-dollar valuations are now facing greater pressure from investors and potential acquirers to demonstrate sustainable revenue, institutional demand and long-term growth.
Copper's situation also illustrates the challenge of selling a crypto infrastructure company when buyers are increasingly focused on profitability and the strategic value of individual products rather than headline valuations.
ClearLoop remains Copper's key asset
Copper has shifted its business strategy significantly in recent years.
The company closed its enterprise custody business in 2023 and instead focused on ClearLoop, its institutional settlement network.
ClearLoop is designed to allow market participants to trade while keeping assets within a custody framework rather than moving them directly onto exchanges.
The system uses a delivery-versus-payment model, helping institutions reduce some of the counterparty and settlement risks associated with transferring digital assets between trading venues.
Copper says its network has more than 1,000 active counterparties and processes more than $50 billion in monthly notional trading volume.
That institutional network could be one of the most attractive elements for a potential buyer.
Why ClearLoop could attract strategic buyers
A buyer interested in Copper would potentially gain access to more than a cryptocurrency custody business.
ClearLoop provides infrastructure connecting institutional trading participants, custodians and digital asset markets.
This could be valuable for companies looking to expand their presence in areas such as:
- institutional crypto trading;
- digital asset settlement;
- custody;
- tokenized assets;
- collateral management;
- derivatives infrastructure;
- regulated digital asset services.
For a bank, exchange, fintech company or crypto infrastructure provider, acquiring an established settlement network could be faster than developing a comparable system internally.
The challenge is determining how much future growth the platform can generate and how sustainable its current institutional activity will be.
Copper was previously considering an IPO
A sale is not the only strategic option Copper has explored.
Earlier this year, the company was reportedly considering a potential initial public offering, potentially following other crypto infrastructure businesses that entered public markets.
However, conditions for crypto-related listings have changed significantly.
The performance of recently listed digital asset companies can also influence the willingness of private investors and potential buyers to pay premium valuations.
Copper's decision to explore a sale therefore reflects the broader strategic choices facing private crypto companies: continue operating as an independent business, pursue an IPO, raise additional capital or sell to a larger financial or technology company.
Why buyers may be offering only $200 million
The gap between Copper's reported $500 million asking price and offers near $200 million is significant.
One factor is the broader decline in valuations for crypto companies compared with the peak of the previous bull market.
Copper was once valued at approximately $2.5 billion, but that valuation was established during a very different market environment.
Another issue involves Copper's capital structure.
The company has raised more than $300 million in venture funding, and sources cited in the report indicated that preferred-stock considerations could complicate the transaction.
Preferred shareholders typically have priority over common shareholders when it comes to certain claims on company assets or distributions.
This can affect how much value ultimately reaches existing shareholders in an acquisition.
The crypto infrastructure market is changing
Copper's potential sale comes as institutional digital asset infrastructure becomes an increasingly important part of the crypto industry.
Large financial companies are no longer focused only on cryptocurrency trading.
They are also building or acquiring infrastructure for:
- custody;
- stablecoins;
- tokenization;
- settlement;
- collateral management;
- payments;
- institutional trading.
This means infrastructure companies with established institutional networks can become strategic acquisition targets even when broader crypto valuations are under pressure.
For potential buyers, the question is increasingly whether a company provides infrastructure that can become part of the traditional financial system.
Copper recently expanded its U.S. presence
Copper's business has also continued to develop in the United States.
Earlier this month, the company's U.S. entity, Copper Markets (US) Inc., was accepted as a FINRA member and operates as an SEC-registered broker-dealer. The company said the development establishes its U.S. presence as a qualified custodian and expands its ability to provide custody, staking, financing and OTC services.
This expansion could potentially increase Copper's strategic value to buyers seeking regulated access to the U.S. digital asset market.
It also demonstrates that the company continues to invest in institutional infrastructure despite the ongoing discussions around a potential sale.
What could happen next?
The reported offers do not mean that Copper will necessarily be sold for $200 million.
The company and its advisers could continue negotiations with potential buyers, seek higher bids or decide to remain independent.
A transaction would also depend on the structure of the deal and the treatment of Copper's existing investors and preferred shareholders.
For now, the large difference between the reported offers and the previous $500 million target remains the key development.
It shows how much the valuation of crypto infrastructure businesses can change even when their underlying technology and institutional networks remain relevant.
What Copper's situation means for the crypto industry
Copper's potential sale offers a broader look at the current state of institutional crypto infrastructure.
During previous bull markets, crypto companies were often valued primarily on growth expectations and the size of their addressable markets.
Today, potential buyers are increasingly examining actual institutional usage, revenue potential, regulatory positioning and the strategic value of a company's technology.
ClearLoop's network of institutional counterparties could therefore be more important to a potential buyer than Copper's historical valuation.
The reported gap between the $500 million asking price and approximately $200 million offers also shows that the market is demanding a much more conservative approach to valuing digital asset infrastructure.
Conclusion
Crypto custody and infrastructure company Copper is reportedly attracting potential buyers, but offers of around $200 million remain well below the approximately $500 million asking price discussed earlier this year.
The company, once valued at as much as $2.5 billion, has shifted its focus toward ClearLoop, an institutional settlement network designed to help market participants trade while keeping assets within a custody framework.
With more than 1,000 active counterparties and significant monthly trading volume, ClearLoop could remain the main strategic attraction for potential buyers.
Copper's situation also reflects a broader trend across the digital asset industry: investors and acquirers are increasingly placing greater emphasis on institutional adoption, regulatory infrastructure and sustainable business models rather than the high valuations seen during the 2021 crypto boom.
Whether Copper ultimately accepts a significantly discounted offer or finds a buyer willing to pay closer to its asking price remains to be seen.
This article is for informational purposes only and does not constitute financial or investment advice.
