Circle, the company behind the popular USDC stablecoin (a cryptocurrency designed to hold a steady value, usually pegged to the US dollar), is making big moves. They are looking to raise around $600 million in their initial public offering (IPO), which is when a private company first offers its shares to the public. This whole endeavor aims to value the company at over $5 billion. It is a significant step for a firm in the crypto world, wouldn’t you say?
- Circle is seeking to raise $600 million through an IPO, aiming for a valuation exceeding $5 billion.
- The company plans to offer 24 million shares of Class A common stock, with existing shareholders also selling shares.
- ARK Investment Management has expressed interest in purchasing up to $150 million worth of shares, though this is not a firm commitment.
The details came out in an updated S-1 registration statement filed with the U.S. Securities and Exchange Commission (SEC) recently. They plan to offer 24 million shares of their Class A common stock. Circle itself is selling 9.6 million of those shares, and existing shareholders are offloading the remaining 14.4 million. It is a bit like a garage sale, but with much bigger numbers and more paperwork, of course.
The company also mentioned that the banks helping with the IPO, called underwriters, might get an option to buy up to 3.6 million extra shares. This helps them cover what is called “over-allotments” if demand is really high. Circle wants to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL.” JPMorgan, Citigroup, and Goldman Sachs are the big names leading the charge here, acting as the main bookrunners for the offering.
The expected price for these shares is somewhere between $24 and $26 each. If you take the middle ground at $25 per share, and consider all 217.3 million shares that could eventually exist, Circle is looking at a valuation of about $5.43 billion. From the IPO, Circle itself would net around $240 million, while those existing shareholders would take home a tidy $360 million. It is a neat sum, isn’t it?
Interestingly, ARK Investment Management, a well-known investment firm, has shown interest in buying up to $150 million worth of these shares. Now, an “indication of interest” is not a firm commitment, mind you. It is more like saying, “Hey, I might buy that,” before you actually pull out your wallet. So, while it sounds good, there is no guarantee they will actually buy any shares, or that the underwriters will sell them any.
It is important to remember that this whole process is not final yet. The SEC still needs to give the green light, making the registration statement “effective.” Until that happens, Circle cannot actually sell or offer these securities to the public. It is a bit like waiting for the official stamp of approval before you can open your new shop. The company says they will move forward as soon as that stamp arrives.
Circle’s Path to Public Trading
This is not Circle’s first rodeo with IPO filings. They actually filed a prospectus with the SEC back in April. At that time, though, they kept the juicy details, like how many shares or the target price, under wraps. Jeremy Allaire, Circle’s CEO, said then that becoming a publicly traded company on the NYSE was all about operating with the “greatest transparency and accountability possible.” It is a good goal, especially in crypto, where things can sometimes feel a bit opaque.
Earlier this month, some whispers started floating around. Reports suggested that Circle was looking for buyers, with big names like Coinbase and Ripple supposedly eyeing them for at least $5 billion. But Circle quickly shut that down. They told The Block directly, “it is not for sale. Our long-term goals remain the same.” Sometimes, a firm “no” is the clearest answer you can get, isn’t it?
It is also worth recalling that Circle had plans for a “blank-check SPAC merger” back in 2022. That deal would have valued the company at a much higher $9 billion. But then the crypto market hit a rough patch, a real bear market, and those plans got scrapped. It just goes to show that even the best-laid plans can change when the market decides to throw a curveball.
Circle is, of course, the issuer of USDC, which is the world’s second-largest stablecoin by supply. It currently boasts a market cap of around $62.1 billion. That is a lot of stable digital money floating around. However, it is still playing second fiddle to Tether’s USDT, which remains the dominant player with a massive $238.3 billion supply. It is like being the silver medalist in a very big race, still impressive, but not quite first place.
