Renaissance Capital Opens New Circle Internet Group (NASDAQ: CRCL) Position: Is the New IPO a Buy?

On October 20, 2025, Renaissance Capital LLC disclosed a new position in Circle Internet Group (NYSE:CRCL), acquiring 51,208 shares for an estimated $6.79 million.

What happened

According to a filing with the Securities and Exchange Commission dated October 20, 2025, Renaissance Capital reported a new stake in Circle Internet Group, purchasing 51,208 shares during the third quarter.

The estimated value of the new position is $6.79 million, representing 3.8% of the fund's $178.43 million in reportable U.S. equity assets as of September 30, 2025.

What else to know

This new position accounted for 3.8% of Renaissance Capital's 13F assets as of September 30, 2025, after the quarter's trades

Top holdings after the filing:

1. Reddit: $16.84 million (9.4% of AUM)
2. Kenvue: $15.91 million (8.9% of AUM)
3. Astera Labs: $15.88 million (8.9% of AUM)
4. Arm Holdings: $14.73 million (8.3% of AUM)
5. Nextracker: $9.29 million (5.2% of AUM)

Company overview

Company snapshot

Circle Internet Group:

• Offers a suite of stablecoins, tokenized funds, liquidity solutions, payments, and developer integration services for blockchain and digital asset applications
• Provides stablecoin and blockchain infrastructure services for organizations
• Serves financial institutions, fintech companies, and enterprises seeking to leverage blockchain-based financial products

Circle Internet Group operates as a platform, network, and market infrastructure for stablecoin and blockchain applications, specializing in stablecoin issuance and related network services.

Its products enable organizations to access digital asset solutions and blockchain-based payments.

Foolish take

Renaissance Capital touts itself as an early IPO investment firm, digging through newly public stocks to buy right as they hit the markets.

The firm's newest position is Circle Internet Group, a stablecoin issuer most famous for its USDC cryptocurrency.

Circle went public in June earlier this year, and its share price quickly rocketed to more than $200. Since then, however, its price has dipped 46% from these highs, and that appears to be when Renaissance Capital swooped in, buying shares at an average price of $133.

While Foolish investors may be wise to give a new IPO stock a few quarters to trade on the public markets before investing in it, Circle's potential could prove to be massive -- as are its range of outcomes for success.

With stablecoins in circulation growing by 50% year over year -- of which Circle commands a market share of roughly 25% -- this market offers investors immense growth potential.

Powered partly by the recently passed GENIUS Act and partly from partnering with a long list of who's-who operators in the financial and crypto industries, Circle's tokens are well-positioned to grow alongside the stablecoin industry as a whole.

Worth about $250 billion today, the stablecoin industry could grow to somewhere between the incredibly wide range of $500 billion and $3 trillion by 2030, depending on which expert you ask. This broad range is proof that this is a very young, burgeoning, and potentially revolutionary industry.

If Circle can corner even a fraction of this stablecoin industry growth, it could be a winning investment for Renaissance Capital. However, I personally would like to watch a quarter or two go by first to gather more information on the company from management and see what its financials look like as it settles in as a publicly traded stock.

That said, dollar-cost averaging into a small position in the company over time may make sense for risk-tolerant investors like me who are optimistic about the company's immense long-term potential.

Glossary

13F reportable assets: Assets that institutional investment managers must report quarterly to the Securities and Exchange Commission (SEC) on Form 13F.

Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Stake: The ownership interest or amount of shares held in a company by an investor or fund.

Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.

Stablecoin: A type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset.

Tokenized funds: Investment funds represented by digital tokens on a blockchain, allowing fractional ownership and easier transfer.

Liquidity solutions: Financial services or products that help investors or companies quickly buy or sell assets without significantly affecting prices.

Developer integration services: Tools and support that help software developers connect their applications to a platform or network.

Market infrastructure: The systems, institutions, and processes that support the trading, clearing, and settlement of financial assets.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue. The Motley Fool recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.