Circle Internet Group Files for $6.71 Billion IPO on NYSE

Circle Internet Group, the issuer of the USDC stablecoin, has officially filed for an initial public offering (IPO) on the New York Stock Exchange. The company plans to offer a total of 24 million shares of its Class A common stock, which will trade under the ticker symbol "CRCL." Out of these, Circle will offer 9.6 million shares, while its existing stakeholders will sell the remaining 14.4 million shares.

The press release suggested that each share could trade within a price range of $24 to $26. If the stock trades at $26, Circle could raise approximately $250 million through the offering, while its existing shareholders could receive roughly $374.4 million for their stake. Circle has also granted underwriters a standard 30-day option to purchase up to 3.6 million additional shares to cover over-allotments.

Three prominent financial institutions, including Goldman Sachs, J.P. Morgan, and Citigroup, will serve as the joint lead active bookrunners. The additional bookrunners also include Deutsche Bank Securities, Barclays, and Société Générale. Circle’s IPO co-managers include Santander, BNY Capital Markets, Needham & Company, Canaccord Genuity, and Oppenheimer & Co. Roberts & Ryan, Drexel Hamilton, Mischler Financial Group, Inc., and AmeriVet Securities will serve as junior co-managers.

Circle confirmed it has filed a registration statement with the U.S. SEC relating to the IPO. With the registration still pending, Circle said it will not commence the sale of its common A stock or accept offers from interested investors.

In an S-1 document filed with the SEC, Circle disclosed that Cathie Wood’s Ark Invest is interested in purchasing up to $150 million of its common A stock. With this $150 million offer, Ark Invest could acquire around 5.76 million units of Circle’s shares from the IPO. This estimate is based on the highest price target of $26, at which Circle plans to sell each share.

The development comes amid reports that Ripple and Coinbase are pushing to acquire Circle. Last month, reports suggested that Circle rejected Ripple’s initial offer of around $5 billion for being insufficient. Subsequent reports also suggested that Ripple increased its bid to roughly $11 billion. Responding to the rumors, Circle refuted reports about its potential sale, emphasizing that its focus revolves around its long-term goals, which include going public.

Circle's decision to go public comes after rejecting rumors of a potential sale to other companies. The company has made it clear that it is not for sale and is instead focusing on raising capital through the IPO. Circle itself is contributing 9.6 million shares to the offering, while the remaining 14.4 million shares are being sold by early investors.

One of the notable investors in Circle's IPO is Cathie Wood's ARK Investment Management, which has expressed interest in purchasing up to $150 million worth of shares. This investment from a well-known figure in the crypto-investing world adds credibility to Circle's public offering and highlights the growing interest in stablecoins.

Founded in 2013, Circle is best known for its USDC stablecoin, which is pegged to the US dollar. USDC is widely used for payments, lending, and trading across various exchanges and decentralized finance (DeFi) platforms. The stablecoin's popularity and utility have made Circle a significant player in the crypto industry.

Circle's IPO is part of a broader trend in the US, where the current administration has encouraged a more rational approach to crypto regulations. This regulatory environment has made it easier for blockchain-native firms to go public, and Circle's IPO is a testament to this trend. However, this is not Circle's first attempt to enter the public market. In 2022, the company tried to merge with a $9 billion SPAC, but that deal ultimately fell through. Despite this setback, Circle appears to be moving forward with its IPO plans.

The IPO is expected to provide Circle with the necessary capital to continue its growth and expansion in the crypto industry. With a valuation of up to $6.71 billion on a fully diluted basis, Circle is positioning itself as a major player in the stablecoin market. The company's decision to go public is a significant milestone for the crypto industry, as it demonstrates the growing acceptance and legitimacy of digital assets in the financial world.