tl;dr
Circle priced its IPO at $31 per share, raising about $1.1 billion in an upsized deal that exceeded initial expectations. The stablecoin issuer is valued at $6.9 billion based on outstanding shares and $8.1 billion fully diluted. A total of 34 million shares were sold, up from the initially planned ...
Circle priced its initial public offering (IPO) at $31 per share, successfully raising approximately $1.1 billion in an upsized deal that surpassed initial expectations. The offering values the stablecoin issuer at $6.9 billion based on outstanding shares, with a fully diluted valuation of $8.1 billion including options and warrants. A total of 34 million shares were sold, increasing from the originally planned 24 million shares priced between $24 and $26.
Shares of Circle will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol CRCL. The company's flagship product, the USDC stablecoin, holds about 24.5% of the market, with $61.5 billion in circulation.
BlackRock, which manages the $53.3 billion reserve backing USDC, is expected to acquire around 10% of the IPO shares, while ARK Invest has expressed interest in purchasing up to $150 million worth of shares. These strategic investments highlight strong institutional confidence in Circle’s market position.
Financially, Circle reported $156 million in net income on $1.68 billion in revenue for 2024, reflecting a decrease from $268 million in net income the previous year. This performance comes amid an evolving regulatory environment, with U.S. legislation on stablecoin regulation anticipated by August, placing Circle at the forefront due to its reputation as a compliance leader since receiving a New York BitLicense in 2015.
This IPO represents a significant milestone as Circle positions itself for growth in a rapidly maturing digital currency ecosystem, with market watchers eager to see its trajectory as stablecoin regulations take shape in the near future.