BlackRock Eyes 10% Stake in Circle IPO

BlackRock Inc. is contemplating the acquisition of approximately 10% of the shares offered in Circle’s forthcoming initial public offering (IPO). This development comes as Circle has filed for an IPO, planning to offer 24 million Class A shares, with 9.6 million from Circle and 14.4 million from existing stakeholders.

Cathie Wood’s ARK Investment Management has also shown interest in purchasing up to $150 million worth of the IPO shares. The shares are anticipated to be priced between $24 and $26 and will trade under the ticker 'CRCL'.

BlackRock’s potential investment, while substantial, is not yet confirmed. It remains uncertain whether BlackRock will invest directly or through an affiliated vehicle, and there is a possibility that the firm may ultimately decide not to proceed with the deal.

BlackRock already has a close relationship with Circle, managing the Circle Reserve Fund, a government money market fund that holds 90% of the reserves backing Circle’s USDC stablecoin. USDC is one of the largest dollar-pegged cryptocurrencies, widely used in crypto trading and DeFi protocols.

If BlackRock proceeds with the investment, it would signify another significant entry point for traditional finance into the digital asset space, further integrating stablecoins like USDC into the broader financial system.

The IPO would position Circle as one of the few large crypto-native firms to go public in the U.S. after a period of inactivity in public market debuts from the sector. Circle had previously attempted to go public via a SPAC merger in 2022, which was later abandoned.