Circle, the Massachusetts-based issuer of the USDC stablecoin, commenced trading on the New York Stock Exchange (NYSE) on Thursday, experiencing a notable surge in its share price. The company’s IPO garnered attention from both cryptocurrency participants and traditional investors, marking a successful public listing for a firm within the digital asset sector.
Anticipation from investors for Circle’s initial public offering was apparent even before its shares began trading. Underwriters for the offering set the share price at $31 on Wednesday, exceeding the initially anticipated range of $27 to $28 per share. In addition to this, the number of shares offered to the public was increased to 34 million from an initial 32 million. On its first day of trading, Circle’s stock price ascended above $96 at one juncture before concluding the session at $83.23. This IPO represents one of the largest public listings for a cryptocurrency-related enterprise since Coinbase Global Inc. went public in 2021. The debut recorded a 168% surge in share value, with shares more than tripling from the initial IPO price of $31 each. The stock reached a high of $103.75 per share on Thursday and was subject to several trading halts due to volatility before closing at $83.23 in New York. This performance represents the largest first-day increase for a U.S. IPO raising over $100 million since Sono Group in 2021, according to data compiled by Bloomberg.
Overall, Circle Internet Group and its selling shareholders collectively raised nearly $1.1 billion through the upsized IPO. The company, along with its supporters, among them co-founder and CEO Jeremy Allaire, divested 34 million shares, each priced at $31. According to regulatory documents detailing its issued shares, this IPO valuation places Circle’s market worth at $6.9 billion. Factoring in employee stock options, restricted share units, and warrants, the company’s fully diluted valuation stands at approximately $8.1 billion. A separate valuation in 2022 following a funding round had placed Circle at $7.7 billion, according to PitchBook data.
Tether, a company based in El Salvador, currently leads the stablecoin market with its USDT token, which holds approximately $150 billion in circulation. USDC, issued by Circle, stands as the second-largest stablecoin by market capitalization, with approximately $60 billion in circulation as of May 29. The company has reported a considerable increase in revenue, escalating from $15 million in 2020 to $1.7 billion last year. Stablecoin issuers generate revenue by earning interest on the reserve assets that collateralize their stablecoins. According to Circle, its USDC stablecoin’s reserves consist of a blend of liquid assets, including cash, short-term U.S. Treasury securities, and overnight U.S. Treasury repurchase agreements held with prominent international financial institutions.
Circle, which issues stablecoins including USDC, a cryptocurrency pegged to the US dollar at a 1-to-1 ratio, and EURC, similarly tied to the Euro, began trading under the ticker symbol “CRCL.” Stablecoins represent a rapidly expanding segment of the broader cryptocurrency industry, and aim to mitigate the volatility often associated with other digital currencies by maintaining a fixed value against real-world assets such as fiat currencies or commodities.
