Circle Files $4B-$5B IPO, Revenue Surges 1% to $779M

Circle Internet Group, the issuer of the $60 billion USDC stablecoin, has filed for an initial public offering (IPO) in the United States, revealing significant revenue expansion in its latest Securities and Exchange Commission (SEC) disclosure. The company is set to trade under the ticker “CRCL”. The rise of Circle USDC, which remains the second-largest stablecoin by market capitalization, is a major factor in the company’s growing role in the cryptocurrency economy.

The company filed for the IPO, submitting its S-1 registration with the SEC on Tuesday after markets closed. This is Circle's second attempt to go public, following a collapsed $9 billion deal to merge with a special purpose acquisition company (SPAC) in late 2022. After opting for a traditional IPO, Circle submitted its initial paperwork in secret last year. A challenging regulatory backdrop for the crypto industry led to delays, despite filing a draft registration with the SEC in January 2024.

Circle is valued between $4 billion and $5 billion, aligning with secondary market estimations that put the company’s valuation at about $5 billion in July. In 2023, Circle’s revenue increased by $779 million, a significant jump from its revenue of approximately $772 million in 2022. Additionally, the company recorded a net profitability of $219 million, a marked improvement over its 2022 net loss of $424 million. This surge in earnings was largely driven by higher interest income on reserves backing USDC, which has benefited from rising U.S. Federal Reserve interest rates.

Circle has also released a preliminary prospectus for its IPO. The company reported nearly $1.7 billion in revenue for 2024 but only $167 million in operating income. A major expense was over $1 billion in distribution costs, mostly paid to Coinbase, which previously held a 50% stake in USDC. This raises concerns about potential constraints on future growth.

Circle’s IPO filing comes at a time when investors are weighing the demand for new stock listings against broader economic concerns, including tariffs, and the IPO market has recently been highly uncertain. However, recent developments in U.S. cryptocurrency regulation suggest a brighter environment for the crypto world. President Donald Trump’s pick for SEC chairman, Paul Atkins, has expressed support for a more neutral stance on crypto regulation. In a written remark, Atkins said, “A top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.”

Despite its recovery from financial problems, Circle still faces challenges, including uncertainty surrounding U.S. regulation and competition from other well-established stablecoins in the market, such as Tether’s USDT, which leads the market with a circulating supply of $104 billion versus USDC’s $28 billion. Interest on reserve assets, which consist mostly of U.S. Treasury securities, continues to be a large component of Circle’s business model. Any change in Fed policy might influence profitability in the near term. Further, if Circle becomes listed, the company’s strong connection to Coinbase, a valuable partner and minority shareholder, may present additional issues.

Circle’s IPO submission is a historic event for the cryptocurrency space, showcasing stablecoin issuers’ financial prospects against regulatory challenges. As the SEC considers the company’s application, investors and market participants will be eagerly observing how the public markets react to one of the largest stablecoin issuers coming to Wall Street. The success or failure of Circle’s IPO could establish a precedent for future public offerings of crypto-related assets.