Circle, the issuer of the $60 billion USDC stablecoin, has filed a preliminary prospectus for its initial public offering (IPO). The financials indicate strong revenue projections of nearly $1.7 billion for 2024, but operating income stands at a more modest $167 million. While Circle’s spending is significant, a major factor impacting profitability is its payments to Coinbase, which previously held a 50% stake in USDC. In 2024, Circle allocated over $1 billion to distribution costs, with a substantial portion going to Coinbase. This raises concerns about whether such high expenditures could constrain Circle’s future growth opportunities.
