BlackRock plans to buy 10 percent of Circle shares in its upcoming six billion dollar IPO.
Circle rejected a five billion dollar offer from Ripple and is moving ahead with its IPO plans.
More crypto firms like Kraken and Gemini are preparing for public listings to gain investor trust.
BlackRock Inc. plans to acquire up to 10% of Circle Internet Financial’s shares during its Initial Public Offering (IPO). Circle is the company behind the stablecoin USDC.
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It recently filed with the U.S. Securities and Exchange Commission to raise $624 million through the IPO. The company expects a market valuation of around $6 billion. This makes it one of the largest public market moves in the stablecoin space.
Details of the IPO Structure
The IPO will offer 9.6 million new shares. It will also include 14.4 million shares from existing shareholders. This allows early investors to sell part of their holdings. At the same time, it gives new investors a chance to enter. The structure aims to attract strong institutional interest.
BlackRock’s move signals growing confidence in crypto-linked companies. Ark Invest, another major player in the investment space, is also exploring the IPO. Reports suggest it may buy $150 million worth of shares. The involvement of large firms shows rising interest in stablecoin technology. It also reflects increasing faith in Circle’s business model.
Ripple’s Failed Acquisition Attempt
Earlier this year, Ripple Labs offered to acquire Circle. The offer was between $4 billion and $5 billion. Circle rejected the deal, saying the value was too low. Instead, the company chose to focus on going public. Ripple has not confirmed if it will make another offer.
Ripple recently completed a $1.25 billion acquisition of brokerage firm Hidden Road. The move expands Ripple’s financial services. Despite this, Circle remains firm on its IPO plan. Company representatives have stated clearly that Circle is not for sale. This confirms their long-term goal to become a public company.
Crypto Firms Turn to Public Markets
Other crypto firms are also preparing for public listings. Kraken, a global crypto exchange, expanded in Europe with a regulated derivatives platform. It also acquired NinjaTrader. A teaser about “KRAK” has led to talk of a possible IPO. These actions show Kraken’s shift toward the public market.
Gemini, another major exchange, is also exploring an IPO. Co-founder Cameron Winklevoss has confirmed internal discussions. Talks with financial advisors are ongoing. However, no official plans have been announced yet.
The Circle IPO highlights a major trend. More crypto firms are seeking legitimacy through public markets. As a result, investor interest in these companies continues to grow. The shift shows how crypto is becoming part of traditional finance.
