Circle Internet, the issuer of the USDC stablecoin, has announced plans for an initial public offering (IPO) that could value the company at up to $6.7 billion on a fully diluted basis. Based in New York, Circle intends to raise approximately $624 million through the offering of 24 million shares, priced between $24 and $26 each. The company itself will sell 9.6 million shares, while existing shareholders—including prominent venture capital firms Accel and General Catalyst—plan to offload an additional 14.4 million shares. Notably, ARK Investment Management, led by Cathie Wood and known for its cryptocurrency exchange-traded funds, has expressed interest in acquiring $150 million worth of Circle shares in this offering.
This strategic move comes amid a rising positive sentiment in the cryptocurrency sector, particularly following the previous U.S. administration’s adoption of more favorable policies towards digital assets. Furthermore, progress in trade negotiations between the United States and key international partners has bolstered the IPO market, restoring investor confidence. According to Matt Kennedy, a senior strategist at Renaissance Capital, the current environment for crypto IPOs is more promising than it has been in the past three years.
Circle’s upcoming IPO stands to be the largest public listing in the crypto space since Coinbase’s debut in 2021. It follows recent milestones such as Mike Novogratz’s Galaxy Digital going public on the Nasdaq, underscoring growing activity within the crypto public markets. Analysts at US Tiger Securities, including Bo Pei, interpret Circle’s decision to re-enter the public market—albeit at a 25% discount to previous valuations—as a sign of renewed investor trust tempered by current market realities.
The timing of Circle’s IPO aligns with legislative developments in the U.S. Senate regarding the GENIUS Act, which aims to regulate stablecoins and could significantly expand their usage domestically. J.P. Morgan projects that the stablecoin market could grow to a valuation between $500 billion and $750 billion in the coming years. Upon completion of the IPO, Circle will be listed on the New York Stock Exchange under the ticker symbol “CRCL,” with J.P. Morgan, Citigroup, and Goldman Sachs serving as lead underwriters.
Amid growing confidence in digital assets, Bitcoin recently reached a new all-time high near $112,000, contributing to the overall cryptocurrency market capitalization surpassing $3.5 trillion—a testament to the expanding mainstream acceptance of crypto investments.
For a more detailed analysis, please refer to the full article at: https://bitcoinist.com/circle-targets-6-7-billion-valuation-in-ipo/
