Étienne Girard
Circle, the fintech company behind the popular USDC stablecoin, is aiming to raise approximately $600 million through its initial public offering (IPO), according to an updated S-1 registration statement filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
The offering will include 24 million Class A common shares, with Circle directly offering 9.6 million shares and existing shareholders supplying the remaining 14.4 million. Additionally, underwriters may be granted a 30-day option to purchase up to 3.6 million extra shares to accommodate potential over-allotments.
CRCL Shares to Trade on NYSE, Valuation Could Reach $6.7 Billion
Circle has applied to be listed on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL”. Major financial institutions including JPMorgan, Citigroup, and Goldman Sachs are serving as the lead bookrunners for the IPO.
The company has set an expected price range between $24 and $26 per share, though it emphasized that market conditions could affect the final pricing and there’s no guarantee the offering will proceed as planned.
If priced at the midpoint of $25 per share and based on 217.3 million fully diluted shares, Circle could achieve a valuation of $5.43 billion. If equity awards are factored in, raising the share count to 258 million, the top-end valuation would approach $6.7 billion.
From the proceeds, Circle is expected to generate roughly $240 million, while selling shareholders would gain around $360 million.
ARK Invest Shows Interest, But No Firm Commitments
The filing also notes that ARK Investment Management and related entities have shown preliminary interest in purchasing up to $150 million worth of shares at the IPO price. However, Circle clarified that these are non-binding indications of interest, and final allocations could vary significantly.
“Indications of interest do not represent formal purchase commitments,” the company stated, leaving open the possibility that shares may be sold to other investors or not at all to ARK.
IPO Follows Sale Rumors and Previous SPAC Withdrawal
While the registration has been filed, Circle emphasized that it has not yet become effective, and the offering will move forward only once the SEC gives approval.
The IPO follows a previous filing in April, which lacked pricing and share count details. More recently, reports emerged suggesting Circle was in acquisition talks with Coinbase and Ripple — claims that the company has firmly denied.
“Circle is not for sale. Our focus remains on long-term growth,” the company stated to The Block.
This IPO attempt comes after Circle scrapped a planned $9 billion SPAC merger in 2022 during the downturn in crypto markets.
Circle’s Role in the Stablecoin Ecosystem
Circle is the issuer of USDC, currently the second-largest stablecoin globally with a market capitalization of $62.1 billion, according to PRIME’s data. However, it still trails Tether’s USDT, which dominates the market with a massive $238.3 billion in supply.
Circle’s push to go public is seen as part of a broader strategy to enhance transparency and institutional trust as the stablecoin sector continues to gain mainstream financial relevance.
