Crypto custody firm Copper has potential buyers. But offers are way below its $500 million asking price

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.