Circle – the company behind the USDC stablecoin – has officially submitted its IPO application to the U.S. Securities and Exchange Commission (SEC), preparing to list its shares on the New York Stock Exchange (NYSE) with a valuation expectation of up to 6.7 billion USD.
Circle aims to raise 624 million USD through the IPO
In the filing submitted to #SEC on Tuesday, Circle stated that it will offer 24 million common shares, with an expected price range of 24 to 26 USD per share. If the offering is successful, the maximum capital raised could reach 624 million USD.
Circle will be traded under the ticker symbol CRCL on the NYSE.
USDC – the backbone of the crypto economy
Circle is the issuer of USD Coin ($USDC ) – currently the second-largest stablecoin in the world and the fourth-largest digital currency by trading volume across the market, according to data from CoinGecko.
The market capitalization of USDC currently stands at 61.5 billion USD
The most recent 24h trading volume is 6.8 billion USD
USDC plays a crucial intermediary role in the crypto ecosystem, enabling users to easily 'enter and exit' the market without being affected by price volatility like regular coins.
After failing its IPO in 2022, Circle makes a strong comeback
Circle once planned to go public through a SPAC model in 2022 but had to cancel due to unfavorable market conditions. However, the effort #IPO has returned in 2024, just as stablecoins are increasingly capturing the attention of financial institutions and governments.
Notably, Cathie Wood and the ARK Invest fund have expressed a desire to purchase up to 150 million USD of Circle shares during this IPO – indicating strong confidence from institutional investors.
Under the watchful eye of a 'big player', Circle still seeks independence
Prior to the IPO, Circle was reportedly a target for acquisition by Ripple – the company behind XRP. According to Bloomberg, Ripple made an offer ranging from 4 to 5 billion USD to acquire Circle last April, but it was rejected due to the valuation being too low compared to the company's potential.
Additionally, Circle has a close relationship with Coinbase – the largest cryptocurrency exchange in the U.S. USDC was initially issued through the Centre Consortium co-founded by Circle and Coinbase. However, this alliance was dissolved in 2023, and Coinbase now holds a direct stake in Circle.
Crypto connection: Circle's IPO not only marks a milestone for stablecoins but also serves as an important step for the crypto industry to get closer to traditional financial markets. If successful, CRCL could become a representative stock symbolizing the legitimization of digital assets on Wall Street.
Risk warning: While the IPO presents expansion opportunities for Circle, the crypto market remains highly volatile. Investing in digital assets, cryptocurrency company stocks, or stablecoins carries high risks and may not be suitable for everyone. Always research thoroughly before participating.