Circle is smashing Wall Street’s expectations with numbers that are hard to ignore. The cryptocurrency company debuted on the New York Stock Exchange just 17 days ago, priced at $31 a share, raising $1.05 billion at an initial valuation of about $6.8 billion.
However, that price did not last more than an hour. On the first day, Circle shares opened at $69 and closed at $83.23, up 168% from their opening price. Within two days, the stock price had surpassed $107.50. By June 23, it had reached $299, valuing the company at more than $72 billion, before falling to $64 billion at the close of trading.
Demand for Circle’s IPO far exceeded expectations, with orders exceeding the offering by 25 times, a ratio that is almost unheard of in 2025, especially for a company tied to cryptocurrency. Investors not only jumped in, but drove the stock price to levels that prompted traditional finance experts like Jimmy Cramer to warn of the risks.
On June 10, when the company’s valuation reached $25 billion, Cramer warned, “Circle is overheated,” highlighting the huge risks of getting too deeply involved in a cryptocurrency the market hasn’t yet acknowledged. Today, the company is worth nearly three times that amount, and the fever shows no signs of abating.
Growth rate surpasses fintech competitors
What makes Circle so groundbreaking is its growth rate. Most crypto-related IPOs grow much more slowly. Coinbase hit $78 billion and Robinhood hit $68 billion, but they took longer to get there. Circle, meanwhile, broke through to $70 billion in just 17 days.
Circle didn't need a SPAC or slowly build up the hype of going public. They rushed into the market and now everyone is questioning the jump.
Circle’s surge has drawn comparisons to past blockbuster IPOs. Its 168% first-day gain is on par with Beyond Meat’s 163% gain in 2019, though it falls short of TheGlobe.com’s 606% in 1998 and VA Linux’s 698% in 1999.
But these events occurred during the dot-com bubble, when every stock with a “.com” in its name was soaring. Despite the wild price swings, Circle was still crushed by the “superpowers”: Alibaba started out with a $231 billion valuation, Saudi Aramco at $1.7 trillion.
Even Snowflake matched Circle in its IPO valuation, but it’s not just a race of scale, it’s also a race of speed, especially since Circle operates in the cryptocurrency space — a space rife with skepticism, regulatory scrutiny, and recent events.
Some critics have argued that Circle mispriced its IPO, allowing its true value to evaporate into the hands of Wall Street. After the turmoil, the question is whether Circle’s valuation is sustainable or will it soon face a sharp correction.
Meanwhile, the broader market is experiencing tensions between Israel, Iran and the United States. On Monday, the Dow rose 374.96 points to close at 42,581.78. The S&P 500 rose 0.96% to 6,025.17, and the Nasdaq Composite rose 0.94% to 19,630.97.
Stocks rose after concerns about an escalation eased. Iran’s military confirmed it had launched missiles at Al Udeid Air Base in Qatar, home to about 10,000 U.S. troops, in response to airstrikes on nuclear facilities in Fordo, Isfahan and Natanz last weekend. However, Qatar’s defense systems successfully intercepted the missiles. There were no casualties.
The development prompted crude investors to sell quickly. Since the attack did not cause damage to US infrastructure or casualties, concerns about crude supplies eased significantly. West Texas Intermediate crude fell more than 7% to close at $68.51 a barrel, from a high above $78, its highest level since January.
Former President Donald Trump confirmed from the White House that Iran had warned the United States in advance of the attack, preventing any casualties. “This resulted in no lives lost or injuries,” he wrote on Truth Social. Trump also praised the emir of Qatar for helping to prevent further escalation, calling it “time for peace!” and asserting that “the Iranian attacks resulted in no casualties in the United States or Qatar.”
Source: https://tintucbitcoin.com/circle-but-pha-72-ty-usd-nhanh-chong/
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