USDC Issuer Circle Now Targets $7.2 Billion Valuation In Major US IPO

Circle, the issuer of the second largest stablecoin by market cap, USDC, announced on Monday that it has increased the expected price range for its upcoming initial public offering (IPO). 

According to Reuters, the new price range has been adjusted from the previously announced $24 to $26 per share to a more ambitious $27 to $28 per share, detailed in a filing with the Securities and Exchange Commission (SEC).

Circle Set For NYSE Debut Under Ticker ‘CRCL’

At the upper end of this revised price range, Circle anticipates raising approximately $896 million, which would propel the company’s valuation to $7.2 billion, according to Reuters. 

The decision to upsize the IPO is attributed to several factors, including Circle’s growing momentum in the stablecoin market, a strong investor appetite for cryptocurrency firms, and an anticipated favorable regulatory environment under President Donald Trump. 

Additionally, Circle is anticipated to benefit from a stablecoin bill currently progressing through Congress in the form of the GENIUS ACT, which aims to set clear guidelines for stablecoin issuers.

Circle plans to go public on the New York Stock Exchange later this week under the ticker symbol “CRCL.” Initially, when Circle filed for its IPO on May 27, it aimed for a valuation of $5.65 billion at the original price target.

Positive Outlook For Crypto IPOs

By going public, Circle will be subject to US securities laws, including mandatory quarterly earnings reports and regulatory disclosures, which are designed to establish trust among conservative investors, banks, and government entities.

In a strategic move, Circle recently launched its stablecoin-powered cross-border payments network, known as the Circle Payments Network (CPN). 

This network facilitates various financial transactions, including business-to-business (B2B) supplier payments, cross-border remittances, global cash consolidations, payroll, and mass disbursements.

Earlier this year, the firm also acquired Hashnote, the issuer of the USYC stablecoin, which was developed by Cumberland Labs. This integration aims to position USYC as a preferred yield-bearing collateral on cryptocurrency exchanges, custodians, and with prime brokers alongside Circle’s existing USDC stablecoin.

Matt Kennedy, a senior strategist at Renaissance Capital, commented on the positive outlook for cryptocurrency IPOs last week, stating that the current climate is more favorable than it has been in the past three years. 

He attributed this optimism to improved trade negotiations between the US and key trading partners, which have revitalized the IPO market and mitigated the effects of previous tariffs.

For its upcoming offering, Circle intends to sell 9.6 million shares, while existing shareholders, including venture capital firms Accel and General Catalyst, will offer an additional 14.4 million shares. 

Notably, ARK Investment Management, led by Cathie Wood, has expressed interest in purchasing up to $150 million worth of shares during the stablecoin issuer’s initial public offering.

Featured image from DALL-E, chart from TradingView.com