Circle launches long-awaited IPO, seeks to raise US$624m
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The news: Circle Internet Group is planning to raise up to USD624 million ($968 million) in its initial public offering, with the company behind the globe’s second largest stablecoin applying to list on the New York Stock Exchange under the ticker CRCL.
The numbers: In a filing with the Securities and Exchange Commission on Tuesday, Circle said that the stablecoin and some of its shareholders will offer 24 million shares for USD24 to USD26 each.
The context: Circle CEO Jeremy Alaire initially tabled plans to IPO in 2021 after a blank-check company merger (SPAC) was scrapped. Circle also filed for a listing in 2024 which would have valued the company at USD9 billion. Founded in 2013, Circle is second in size to the Tether stablecoin, and was last valued at USD7.7 billion in a 2022 funding round.
US legislation on stablecoins is currently making its way through Congress, which could support the sector if it is approved. However, in its filing Circle warns that if stablecoins are classified as a securities, its business could be materially affected. In April the Securities and Exchange Commission announced that it does not deem stablecoins to be securities.
Trump is supportive of crypto and the broader digital assets industry, just this week announcing that the Trump family media company plans to raise USD3 billion to buy cryptocurrencies including Bitcoin.
The SEC filing states that Cathie Wood’s ARK Investment Management said it is interested in buying up to USD150 million of the shares in the IPO. Other shareholders in the company include Accel, Breyer Capital, General Catalyst, Oak Investment Partners and FMR.
The sources: Circle, SEC filing, FT
