Stablecoin issuer Circle has officially launched its initial public offering (IPO), pricing shares at $31, which successfully raised around $1.1 billion. This upsized offering exceeded the company’s previous targets and brought its valuation to an estimated $6.9 billion based on outstanding shares. The fully diluted valuation, accounting for options and warrants, reached approximately $8.1 billion.
In total, Circle and its shareholders sold 34 million shares, increasing from an initial target of 24 million shares priced between $24 to $26. Due to heightened demand, the pricing range was adjusted to between $27 and $28 earlier in the week. Trading under the ticker CRCL is set to begin on the New York Stock Exchange.
Circle’s flagship stablecoin, USDC, represents about 24.5% of the stablecoin market, with approximately $61.5 billion in circulation. Notably, major asset management firm BlackRock is anticipated to acquire 10% of the IPO shares, while ARK Invest showed interest in purchasing up to $150 million of shares.
In terms of financial performance, Circle reported a net income of $156 million on $1.68 billion in revenue for 2024, a decrease from the previous year’s net income of $268 million. The IPO coincides with ongoing legislative efforts in Congress to establish regulations for stablecoins, with a final vote expected sometime in August. Circle is regarded as one of the most compliant players in the cryptocurrency space, having received a New York BitLicense back in 2015.
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