Circle announced its first financial report after going public, Q2 revenue of $647 million exceeded expectations, briefly soaring 17% during trading, but subsequently, a group of shareholders including co-founder and CEO Jeremy Allaire announced they would sell a total of 8 million shares, causing CRCL to drop over 6% in after-hours trading.
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Original shareholders including Jeremy Allaire will sell 8 million shares of CRCL
According to documents submitted to the U.S. Securities and Exchange Commission on Tuesday, Circle will issue 2 million shares, while original shareholders will sell 8 million shares, totaling 10 million shares. Based on Tuesday's closing price of $163.21 per share, this issuance will raise $1.63 billion.
According to Bloomberg, the pricing for this issuance will be set on Thursday (8/14) evening.
This stock sale occurs within six months post-IPO, during which some early shareholders are typically prohibited from selling their shares. However, when the stock price significantly rises above the IPO price and there is clear market demand for the shares, shareholders can lift the so-called lock-up agreement. According to documents previously submitted by Circle, insiders have agreed not to sell their shares for several days after the company's quarterly performance announcement in September or 180 days post-IPO (whichever is earlier).
Documents show that Allaire will sell 357,812 shares but will still maintain a 23.9% voting right.
Compared to yesterday's closing price of CRCL at $163.21 and the IPO price of $31, shareholders selling 8 million shares of CRCL will bring them over $1 billion in profits.
This article is authorized for reprint from: (Chain News)
Original title: (Are Circle shareholders cashing out? Jeremy Allaire and others will sell 8 million shares for a profit of over $1 billion)
Original author: Florence
The article 'Cash out after making a fortune? Circle CEO and a group of shareholders will sell 8 million shares, earning over $1 billion' was first published in 'Crypto City'