Circle, the firm that operates the USDC stablecoin, has filed for an initial public offering (IPO) on the New York Stock Exchange (NYSE). The development marks a significant step for cryptocurrencies entering mainstream finance. Investors are eagerly awaiting to see Circle’s strategy for going public.
Circle IPO Breakdown: Share Price, Volume, and Underwriters
Circle is offering 24 million shares in its IPO at a range of $24 to $26 per share. The firm will offer 9.6 million new shares (Class A shares), with current owners selling around 14.4 million shares. The underwriters have a 30-day overallotment option to purchase another 3.6 million shares.
The combined offering could account for 27.6 million shares, raising a potential $624 million, according to a release dated May 27. The shares are to list on the New York Stock Exchange under the symbol “CRCL.” J.P. Morgan, Citigroup, and Goldman Sachs are heading the IPO, with a number of banks backing the issue.
Circle issues USDC, the second-largest stablecoin with a market cap of over $61 billion. It is a prominent player in the cryptocurrency market, secured by liquid assets such as U.S. Treasury bonds.
Founders Jeremy Allaire and Sean Neville will maintain control through Class B shares that have five votes each. These shares are not subject to the public offering, as they allow the founders to retain significant control over the company after the IPO. This is Circle’s second attempt to go public; its 2022 SPAC deal fell through due to delays by the SEC. The IPO filing provides a full picture of the company’s finances, as mandated by public company regulations.
Circle’s Global Expansion Strategy Ahead of Public Listing
Circle recently turned down a $4–5 billion bid by Ripple. The firm decided to go the IPO route on its own. The decision underscores Circle’s confidence in its growth and influence in the market. While this unfolded, Circle expanded internationally.
It won regulatory approval in Abu Dhabi and partnered with the city’s tech hub, Hub71. It will enable testing of Circle’s USDC and EURC stablecoins in a local regulatory sandbox. The firm wants to reinforce its global presence in the face of a surge of competition in stablecoins.
Circle’s IPO is a milestone for cryptocurrency companies entering the mainstream financial system. It can enhance the confidence of investors in the face of persistent regulatory scrutiny. The offering ranks among the largest by a cryptocurrency firm after Coinbase went public in 2021.
Market analysts view Circle’s IPO as a test case for stablecoin infrastructure companies to come. The success of the IPO has the potential to set the stage for how cryptocurrency companies engage with public markets.
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