Circle Internet Financial, the company behind the USDC stablecoin, has successfully priced its initial public offering at $31 per share, raising an impressive $1.05 billion in one of the largest US listings this year. The upsized deal, officially confirmed late Wednesday, will see Circle commence trading on the New York Stock Exchange under the ticker symbol CRCL.
Founded in 2013 by CEO Jeremy Allaire, the Boston-based firm sold a total of 34 million shares, with 14.8 million shares coming from the company itself and 19.2 million shares from existing shareholders. Demand for the offering was robust, with reports indicating that it was oversubscribed by more than 25 times by the time books closed on Tuesday. This pricing gives Circle a valuation of $6.9 billion based on listed shares, and approximately $8.1 billion fully diluted.
Circle’s debut on the public market comes at a time when investor interest in crypto-adjacent stocks is experiencing a resurgence. Despite a decrease in net income from $268 million to $156 million, the company’s fundamentals remain robust, driven by the increasing use of USDC in digital payments and cryptocurrency trading.
USDC stands as the second-largest stablecoin globally, with a circulation exceeding $61 billion as of May 29. It currently commands about 29% of the stablecoin market, according to CoinMarketCap. In addition to USDC, Circle also issues a euro-backed stablecoin, EURC, and offers infrastructure and payment tools for businesses looking to integrate digital currencies.
In a show of confidence in the offering, major investors like ARK Invest and BlackRock have expressed interest in participating. ARK Invest has indicated plans to purchase up to $150 million in shares, while BlackRock is anticipated to acquire around 10% of the IPO allocation. BlackRock also manages the Circle Reserve Fund, a government money market fund holding 90% of USDC’s reserves, valued at $53.3 billion as of this week.
The successful IPO marks a significant milestone in Circle’s journey to the public markets. Following the abandonment of a SPAC merger in 2022, the company confidentially refiled for a traditional IPO earlier this year, ultimately achieving one of the largest crypto-linked listings since Coinbase’s debut in 2021.
As regulatory clarity improves and institutional interest in digital assets grows, Circle’s IPO strategically positions the firm at the crossroads of crypto innovation and traditional finance. With strong backing from Wall Street and a solid balance sheet, Circle enters the public markets amidst high expectations and bright prospects.
In conclusion, Circle’s upsized NYSE IPO of $1.05 billion signifies a major milestone for the company and the broader crypto landscape. This successful offering not only highlights the firm’s strong fundamentals but also underscores the increasing convergence of digital assets and traditional finance. Investors and industry watchers alike will certainly have their eyes on Circle as it navigates this new chapter in its growth story.