Circle, the company known for its popular USDC stablecoin, has made some significant changes to its IPO filing, indicating strong investor demand. In a recent filing with the US Securities and Exchange Commission (SEC) on June 2, Circle revealed that it plans to issue 32 million Class A shares, an increase from the previously announced 24 million. Additionally, the proposed price range has been raised to between $27 and $28 per share, up from the initial range of $24 to $26.
With these adjustments, Circle could potentially raise up to $896 million, a substantial increase from the original estimate of $624 million. This would also push the company’s valuation to around $7.2 billion on a fully diluted basis, up from the initial target of $6 billion. The revised IPO marks a significant milestone for Circle as it aims to solidify its position in the digital finance space.
One of the driving factors behind Circle’s decision to expand its IPO is the growing institutional interest in stablecoins and the increasing regulatory clarity surrounding these digital assets. The stablecoin sector, once considered a niche market, is now gaining mainstream relevance as adoption and trust in these assets extend beyond the crypto community.
Major financial institutions like JPMorgan and Citigroup are showing interest in stablecoins, with some exploring the possibility of jointly issuing a dollar-backed asset. In a notable development, BlackRock, the world’s largest asset manager, is reportedly one of the largest potential buyers of Circle’s stock. Sources suggest that BlackRock is considering purchasing approximately 10% of the IPO shares, a move that could further solidify the relationship between the two companies.
BlackRock already plays a significant role in managing Circle’s USDC reserves through the Circle Reserve Fund, which holds a majority of the stablecoin’s backing assets. By acquiring a stake in Circle, BlackRock would not only deepen its involvement in the stablecoin market but also expand its interest in the broader cryptocurrency space beyond traditional ETFs.
Overall, Circle’s decision to increase its IPO size and price range reflects the growing interest in stablecoins and the company’s strategic positioning within the digital finance landscape. As the second-largest dollar-pegged token globally with a market cap exceeding $61 billion, USDC continues to be a key player in the stablecoin market, attracting both retail and institutional investors alike.