Circle Raises $1.1 Billion in IPO Valuing Firm at $6.9 Billion

Circle, a prominent stablecoin issuer, has successfully raised $1.1 billion through its initial public offering (IPO), pricing its shares at $31 each. The upsized deal exceeded both its initial size and guidance, with the company and its shareholders selling 34 million shares, up from the initially planned 24 million shares at $24 to $26 each. The surge in demand pushed the price range up to $27–$28 before the final pricing was set.

The IPO values Circle at $6.9 billion based on outstanding shares, with a fully diluted valuation of $8.1 billion when including options and warrants. This significant valuation reflects the growing importance and market presence of Circle's flagship product, USDC, which currently accounts for about 29% of the stablecoin market with $61 billion in circulation as of May 29.

Circle's listing on the New York Stock Exchange under the ticker CRCL comes at a pivotal time for the stablecoin industry. U.S. lawmakers are advancing legislation to regulate stablecoins, with final passage expected sometime in August. Circle, which received a New York BitLicense in 2015, is widely recognized for its compliance-forward approach, making it a key player in the regulatory landscape.

BlackRock, which manages the reserve fund backing USDC, is expected to acquire 10% of the IPO shares. Additionally, ARK Invest has expressed interest in purchasing up to $150 million worth of shares, further underscoring the confidence institutional investors have in Circle's future prospects.

Circle's financial performance has shown resilience despite market fluctuations. The company reported $156 million in net income on $1.68 billion in revenue for 2024, a decline from $268 million in net income the prior year. This financial stability, coupled with its strong market position, positions Circle well for future growth and regulatory compliance.