#CRCL

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𝘾𝙞𝙧𝙘𝙡𝙚 𝙀𝙢𝙥𝙡𝙤𝙮𝙚𝙚𝙨 𝙇𝙤𝙨𝙩 $3 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝘿𝙚𝙨𝙥𝙞𝙩𝙚 𝘾𝙍𝘾𝙇 𝙎𝙩𝙤𝙘𝙠 𝙍𝙖𝙡𝙡𝙮 𝘽𝙮 700%, 𝙎𝙖𝙮𝙨 𝘾𝙝𝙖𝙢𝙖𝙩𝙝 𝙋𝙖𝙡𝙞𝙝𝙖𝙥𝙞𝙩𝙞𝙮𝙖

The Circle (CRCL) stock surged an additional 20% on Friday, and is already up by 700% since its IPO earlier this month. Despite these massive gains, billionaire investor Chamath Palihapitiya noted that the stablecoins firm’s employees lost nearly $3 billion, as the company had to go for a traditional IPO route instead of SPAC merger. This is because the company employees have to sell 14.4 million shares from their holdings to proceed with the IPO.

With the staggering 700% CRCL stock rally since its IPO, USDC stablecoin issuer Circle has reached close to $50 billion with 15 days of its IPO, conducted at a valuation of under $8 billion. This massive rally comes on the backdrop of the GENIUS Stablecoin Act, which proceeds to the US House for final approval.

However, Chamath Palihapitiya said that Circle employees lost a major portion of this traditional IPO route, while questioning this traditional public listing method, and comparing it to SPAC merger. In his recent post on X platform, Palihapitiya said that during the entire IPO process, employees had to shed a total of 14.4 million shares at $31 per share, worth $450 million.

However, with the stablecoin firm hitting $3.456 billion on the debut of the public listing, they lost nearly $3 billion in this process. Palihapitiya said that this is why he prefers SPACs over traditional IPOs.

The billionaire added that value is transferred to intermediaries in SPACs and direct listings, but at least it’s disclosed upfront and negotiable. In traditional IPOs, banks use opacity to reward their best customers with free stock.