1. Massive Offering and High Valuation:
Circle, the issuer of stablecoins, successfully completed its public offering, achieving revenues of $1.1 billion, surpassing expectations.
The share was priced at $31, and the offering size increased due to strong demand.
The company's market value reached $6.9 billion (or $8.1 billion when accounting for all potential shares).
This offering is one of the largest in the cryptocurrency sector this year, marking Circle's third successful attempt after two previous failures.
2. Success Factor: The stablecoin USDC and support from major investors:
The USD Coin (USDC), Circle's primary stablecoin and the second globally by market value, underpins the company's success. Its market value exceeds $61 billion, accounting for 24.5% of the stablecoin market.
Investor confidence has been bolstered by the participation of major players like BlackRock, which purchased around 10% of the offering shares, and ARK Invest, which expressed its intention to invest $150 million.
The company recorded revenues of $1.68 billion and a net profit of $156 million in 2024, despite being lower than the previous year, it remains strong.
3. Expansion Plans and Market Context:
Circle aims to use the offering proceeds (and the additional $158 million should the underwriters exercise their option) for global expansion, developing new products, and acquisitions, while reinvesting profits instead of distributing them.
This offering comes at a time when other crypto companies like BitGo, Kraken, and eToro are looking to go public, indicating a general trend toward increasing legitimacy and access to capital.
4. Strategic Timing and Impact on the Industry:
The offering coincides with the advancement of stablecoin regulation bills in the U.S. Congress.
Thanks to obtaining a BitLicense and its proactive compliance approach, Circle is well-positioned to lead in this regulatory phase.
The success of this offering is a strong signal of renewed optimism in the digital asset market and may serve as a model for future offerings, contributing to the integration of digital finance with traditional finance.
