- Circle targets $6.7B valuation in IPO amid acquisition rumors from Coinbase, Ripple.
- USDC hits $230B in transactions, reinforcing Circle’s growing influence in the stablecoin market.
Circle, the issuer behind USDC, the world’s seventh-largest cryptocurrency, is navigating a pivotal moment as it pushes ahead with plans for an IPO, even as acquisition rumors swirl around potential suitors like Coinbase and Ripple.
Circle’s IPO plan
In a recent SEC filing, Circle revealed its intention to raise up to $624 million by offering 24 million shares, priced between $24 and $26 each, aiming for a fully diluted valuation of $6.7 billion.
With its S-1 registration submitted last month, Circle’s bold move underscores a growing effort to bridge crypto innovation with traditional financial markets.
Remarking on the same, Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs, said,
“The outlook for crypto IPOs is better than at any point in the past 3 years or so.”
What impact will it have?
That being said, Circle plans to release 9.6 million shares, while existing stakeholders, such as venture capital firms Accel and General Catalyst, are set to offload an additional 14.4 million shares.
Seeing this, ARK Investment Management, led by Cathie Wood, has expressed interest in purchasing up to $150 million worth of Circle shares.
After its $9 billion SPAC deal backed by Bob Diamond collapsed in late 2022, Circle’s latest IPO move signals a revived effort to enter public markets.
Commenting on the development, Bo Pei, an analyst at US Tiger Securities, added,
“Circle now returning to the public markets indicates regained confidence — but at a 25% lower valuation, which reflects more realistic market conditions and less frothy expectations.”
Circle’s journey so far and current market dynamics
Well, since its inception in 2013, Circle has emerged as a major force in the stablecoin space, with its USDC token now valued at over $60 billion, ranking second only to Tether in market capitalization.
Recent data from Visa’s on-chain analytics highlights USDC’s growing utility, with transaction volumes reaching $230.80 billion in the month of May.
However, USDT still leads the pack with a massive $421.15 billion in the same month.
Therefore, as Circle pushes ahead with its IPO plans, its role in driving stablecoin adoption and usage across the digital economy remains more significant than ever.
