Circle Shares Surge 234% on NYSE Debut

Circle’s (CRCL) shares experienced a remarkable surge on their New York Stock Exchange debut on June 5, reaching a peak of $103.75 within less than 30 minutes of trading. This rapid ascent resulted in multiple trading halts due to volatility, as the price skyrocketed 234% above the initial public offering (IPO) price of $31. The IPO successfully raised over $1 billion by selling 34 million shares, with Circle selling 14.8 million shares and CEO Jeremy Allaire and other backers divesting 19.2 million shares.

The trading session was punctuated by pauses under the exchange’s limit-up/limit-down mechanism as the price surged. The initial trade at $31 implied a $21 billion market value based on listed shares and approximately $26 billion on a fully diluted basis, which includes options, restricted units, and warrants. As a result, the $103.75 price briefly made CRCL’s market cap surpass $70 billion.

Blockworks co-founder Jason Yanowitz highlighted that investment banks and CEOs are paying attention to the significant price increase in CRCL, indicating that it’s a signal for the crypto market. He stated, “Get ready for an onslaught of crypto IPOs.” Moonrock Capital CEO Simon Dedic echoed Yanowitz’s comments, saying CRCL’s debut is a green light for crypto companies and builders. He added, “If you stay focused, play long-term, and build real value, this is where you could end up. In the end, fundamentals win. Real revenue wins. Fundamental season is officially on.” Artemis co-founder Jon Ma congratulated Circle, calling the event “definitely a big IPO.” He also predicted that CRCL would close the year at a price of nearly $99.

Banks such as JPMorgan Chase, Citigroup, and Goldman Sachs priced the stock $3 above the final range of $27 to $28, set earlier in the week. As of the latest update, CRCL was trading at $83.98, up over 150% from its initial market price. Bitwise senior investment strategist Juan Leon noted that CRCL’s first-day returns rank second in the top 10 IPOs over the past year.