Circle IPO is said to be over 25 times oversubscribed

Circle IPO is said to be over 25 times oversubscribed

Circle, the issuer of the USDC stablecoin, is set to go public on the US stock market on June 5, with an IPO price range of $27 to $28 per share. The IPO is expected to raise approximately $7.2 billion, with a total of 257 million shares outstanding [1]. The company's net profit for 2024 was $156 million, leading to an initial static price-to-earnings ratio (PE) of around 46 times at the midpoint price of $27.5 per share [1].

The IPO has garnered significant interest, with ARK Investment publicly committing to subscribe and the offering being oversubscribed by 20 times, indicating strong market demand [1]. Institutions have been aggressively competing for shares, highlighting the historic significance of Circle's listing in the context of growing cryptocurrency adoption and increasing government recognition [1].

Circle's stablecoin network, centered around USDC, holds a 29% market share as of March 31, 2025, making it the second-largest stablecoin globally [1]. USDC is backed by high-liquidity assets denominated in US dollars, ensuring users can redeem USDC for dollars at any time [1]. The company's reserve management policy ensures that USDC stability and user redemption capability are maintained, with 90% of reserves held in the Circle Reserve Fund managed by BlackRock [1].

Circle's revenue model is driven by interest income on stablecoin reserve assets, primarily US Treasuries and cash. In 2024, Circle generated $1.7 billion in revenue, with net income of $156 million [1]. In Q1 2025, revenue was $579 million, with net income of $64.8 million [1]. The company's success in this model is evident in its rapid growth and strong financial performance.

The IPO marks a significant milestone for Circle and the broader stablecoin industry. As the demand for stablecoins continues to grow, Circle's listing on the US stock market is expected to further solidify its position as a leader in the digital asset capital markets.

References:
[1] https://medium.com/@beaverresearch/circles-ipo-this-week-sparks-surge-in-demand-for-stablecoin-leader-1c49bef7eb2e