BlackRock plans to acquire 10% of Circle Internet's IPO shares.

BlackRock plans to acquire 10% of Circle Internet's IPO shares.

BlackRock, the global investment management firm, has announced plans to acquire 10% of Circle Internet's IPO shares. The acquisition, valued at approximately $62.4 million, is part of BlackRock's strategy to expand its presence in the digital asset space. This move follows Circle's recent IPO filing, which revealed $29.98 billion in net assets backing its USDC stablecoin [2].

Circle Internet, the issuer of USDC, is seeking to raise up to $624 million through its initial public offering. The company aims to list its shares on the New York Stock Exchange, offering 24 million Class A common stock shares. The IPO filing also disclosed that Circle's primary asset, the Circle Reserve Fund, managed by BlackRock, earned $1.28 billion in net investment income during fiscal 2024, reflecting a 5.31% yield [2].

The acquisition of Circle shares by BlackRock is significant, as it underscores the growing interest in stablecoins and their underlying reserve funds. Circle's IPO is likely to have a substantial impact on the deal's ultimate value, as the company's filings indicate that the Hashnote acquisition, valued at nearly $100 million, was part of the consideration for the deal [1].

Circle's relationship with BlackRock extends beyond portfolio management, as the fund's expenses totaled $55.26 million in fiscal 2024, with BlackRock waiving and reimbursing over $33 million in advisory and class-specific administrative fees. This lowered the net expense ratio to just 0.09% for the year [2].

The IPO filing also highlights Circle's strategic alliance with Coinbase, which reinforces its infrastructure commitments. The stablecoin reserves' growth from $25.38 billion in April 2023 to $29.98 billion in April 2024 signals increasing adoption of USDC, with the fund generating over $760 million in additional net assets and over $1.28 billion in income [2].

As Circle transitions from a private tech firm to a regulated, U.S.-listed financial entity, BlackRock's investment in the company's IPO underscores the potential of stablecoins and their underlying reserve funds in the digital asset space. The acquisition is expected to provide Circle with additional capital to support its growth and expansion plans.

References:
[1] https://www.theblock.co/post/355895/circle-paid-100-million-for-hashnote-used-mostly-shares-ipo-filings-reveal
[2] https://www.thecoinrepublic.com/2025/05/27/usdc-issuer-circles-ipo-filing-reveals-30b-reserve-backing-as-nyse-listing-nears/