Circle Internet Group, issuer of the world’s second largest stablecoin, has priced its initial public offering (IPO) at $31 U.S. per share, which is above the expected range of $27 U.S. to $28 U.S.
The IPO price gives Circle a market value of $6.80 billion U.S. The stock will begin trading today (June 5) on the New York Stock Exchange under the ticker symbol “CRCL”
New York-based Circle is expected to raise $1.05 billion U.S. in the offering of 34 million shares. Due to strong demand, Circle increased the number of shares sold in the IPO from 32 million.
Originally, Circle had sought to raise $624 million U.S. by selling 24 million shares in a price range of $24 U.S. to $26 U.S. a share.
Circle is the issuer of USD Coin, commonly referred to by its ticker symbol “USDC.” It’s currently the second biggest stablecoin in the world, comprising 27% of the market.
The largest stablecoin is rival Tether’s USDT, which dominates 67% of the stablecoin market.
Stablecoins are cryptocurrencies whose price is tied to an underlying asset, typically the U.S. dollar or price of gold. That peg makes stablecoins less volatile than other crypto.
Circle’s IPO is being watched closely by the crypto industry for investor appetite when it comes to companies focused on digital assets and blockchain technologies.
In its IPO prospectus, Circle said it earned $156 million U.S. in net income in 2024 on $1.68 billion U.S. of revenue.
Analysts say that Circle is a pure play crypto company. Unlike companies such as Block (XYZ) and Strategy (MSTR), Circle’s entire business is stablecoins and cryptocurrencies.
Many analysts also view stablecoins as crypto;s "killer app." Demand for stablecoins is growing due to new interest from commercial banks and payment firms.
The U.S. Congress in Washington, D.C. is in the process of passing stablecoin legislation, possibly this summer.
Circle’s USDC coin is favoured by many institutions, largely because of Circle’s emphasis on regulatory compliance.
