Copper Raises $196M After Experiencing Loss In 2021
- Copper has recently raised $196 million in an ongoing Series C funding round, according to a filing with the UK government.
- The new funding comes after losses of $16 million and $4.1 million in 2021 and 2020, respectively despite the market being bullish at that time.
- The firm gathered $181 million from the company’s existing shareholders while the remaining $15 million comes from a convertible loan note.
Renowned digital asset custody firm Copper has recently raised $196 million in an ongoing Series C funding round, according to a filing with the United Kingdom government.
A London-based crypto firm, which gained popularity in 2021 when the crypto craze was at its peak and companies and individuals were highly optimistic, secured the new funding following losses of $16 million and $4.1 million in 2021 and 2020, respectively.
A recent report by Bloomberg reveals that the new funding round gathered $181 million from the company’s existing shareholders while the remaining $15 million comes from a convertible loan note.
A convertible loan note is a form of short-term debt that is quite common for businesses that are seeking to raise money. At a later point in time, the loan will be converted into equity shares under this structure. The investors are able to earn a discounted share price according to the future valuation of the company while investing through the convertible loan note.
Copper is a cryptocurrency platform that is gaining recognition for its position as a prime brokerage,custody startup, and settlement services provider to institutional investors who are investing in cryptocurrencies. Since its inception in 2018 by Dmitry Tokarev, the firm has managed to attract the support of a large number of notable investors, including Dawn Capital, MMC Ventures, and LocalGlobe.
Copper’s Series C round will value the company at approximately $2 billion, according to CoinDesk in the past; however, the current worth of the company is unknown.
In July this year, British multinational financial services behemoth Barclays Bank joined the expanding list of investors who are supporting the company. According to a report by Sky News, Copper was in the process of seeking financial backing from new and existing investors at the time in an effort to increase its valuation to $2 billion. Two people with knowledge of the company have indicated that in 2021 it attempted to raise $500 million at a valuation of $3 billion but the market conditions considerably hampered the company’s progress.