Stablecoin firm Circle's shares more than triple in NYSE debut
Stablecoin issuer Circle Internet's shares more than tripled in their debut on the New York Stock Exchange on Thursday, a move expected to boost an IPO market that has struggled to regain momentum.
The New York-based company's stock opened for trading at $69 apiece, valuing the stablecoin issuer at nearly $18 billion, on a fully-diluted basis.
The stock rose as much as $103.75 and was halted multiple times for volatility amid frenetic trading.
The successful flotation is likely to encourage other crypto IPO hopefuls eyeing public markets. Surging interest in digital assets amid rising token prices and supportive regulatory developments is expected to spur more listings from the industry.
"The more crypto companies that go public, the easier it will be for future crypto companies," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
"The number of deals is important, but so is the variety - having publicly-traded companies across the crypto ecosystem."
Circle and some existing investors raised $1.05 billion in an upsized IPO by selling 34 million shares at $31 apiece, above the marketed range of $27 to $28 each.
"This morning we had Circle going public in what I can only characterize as a blowout deal," said Lynn Martin, president at NYSE Group.
The outlook for the digital asset industry has also brightened with the Trump administration adopting a lighter regulatory touch and moving to establish a crypto-friendly environment.
In recent months, a growing number of companies have also added cryptocurrencies to their balance sheets to capitalize on rising token prices.
The crypto market is changing and evolving significantly. As the rules continue to be refined and clarified, there will be a flood of crypto and crypto-related IPOs, said Ross Carmel, partner at law firm Sichenzia Ross Ference Carmel.
Circle's flotation is the biggest crypto listing since Coinbase's 2021 debut and the first major IPO by a stablecoin issuer. It had earlier attempted to go public through a $9 billion blank-check deal, but the deal fell apart in 2022.
MAINSTREAM ADOPTION
Circle's IPO is also a landmark moment for the stablecoin market, which has been a hot topic since the Trump administration took office.
The passage of the pending stablecoin bill could further accelerate the adoption of the digital tokens and make them more mainstream.
Apart from being used to trade cryptocurrencies, stablecoins are also increasingly used as a form of digital payment.
Wall Street expects stablecoins to become one of the biggest themes within finance in the coming years and the next multi-trillion-dollar market opportunity.
Founded in 2013 by Jeremy Allaire and Sean Neville, Circle issues the dollar-denominated USDC, the world's second-largest stablecoin by market cap after Tether. Besides USDC, Circle also issues the euro-denominated stablecoin EURC.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
6 hours ago
- CNA
EchoStar prepares potential bankruptcy filing amid FCC review, WSJ reports
EchoStar is considering a Chapter 11 bankruptcy filing as the telecommunications services firm vies to shield its cache of wireless spectrum licenses from the threat of revocation by federal regulators, the Wall Street Journal reported on Friday, citing people familiar with the matter. The company declined to comment on the report. Last month, the Federal Communications Commission (FCC) notified EchoStar it was investigating the company's compliance with certain federal obligations to provide 5G service in the U.S., questioning EchoStar's buildout extension and mobile-satellite service. FCC's actions have severely limited the company's ability to make strategic decisions regarding the growth and investment of its Boost Mobile business, according to a regulatory filing by the company last month. EchoStar has previously disclosed that it missed roughly $500 million in interest payments, citing uncertainty around the ongoing FCC review.
CNA
8 hours ago
- CNA
Commentary: Tesla is being eaten alive by Chinese rivals it inspired
NEW YORK: The biggest story swirling around Tesla right now concerns chief executive Elon Musk's sudden, if unsurprising, break with a leader who is as calm and unassuming as he is, President Donald Trump. The important story concerns what is happening far from these shores: China. Shipments from Tesla's Shanghai factory fell by 15 per cent in May compared with a year before, according to preliminary data from China's Passenger Car Association. That marks eight straight months of declining output from Tesla's single biggest electric vehicle factory, accounting for around 40 per cent of its global capacity. These figures don't break out which of those EVs get sold in China or get exported from there, but this trend is not Tesla's friend. Through April, its share of China's battery EV market had fallen by more than half over the past four years, according to data compiled by New AutoMotive, a UK-based research firm. DETERIORATING ECONOMICS The numbers also suggest deteriorating economics. On a simple, calendar-day basis, they imply Shanghai factory utilisation of 76 per cent in May. That isn't terrible, but it's down significantly from last May. So far this year, excluding the month of February when Tesla was retooling for the refreshed Model Y, implied utilisation is running 10 points lower than the same period in 2024. Speaking of that updated Model Y, it isn't a good sign that Tesla has already offered incentives like zero-per cent financing in China. Taken together, lower capacity utilisation, implying higher fixed costs per vehicle and higher discounts, meaning less net revenue, point to a continuing problem with what was all too apparent in Tesla's first-quarter results: crushed profit margins in its main business. Unlike Tesla's weaker EV sales in other important markets such as California and Europe, the slide in China has nothing to do with Musk's politics. Tesla's reputation within China remains high, viewed as an essential catalyst in revolutionising the quality and scale of the country's auto sector. NOT A CATALYST, BUT A REACTANT Except that "catalyst" isn't quite the right word, because the beauty of catalysts is that they spark transformations but don't get used up in the process. In this case, it would be more accurate to call Tesla a reactant, because the domestic Chinese EV industry spurred on by its example is now eating it alive. While Tesla's share of China's battery EV sales is down to about 10 per cent so far this year, that drops to 5.8 per cent when you include other so-called 'new energy vehicles' (NEV) such as plug-in hybrids, according to figures compiled by Goldman Sachs Group. Competitors including BYD, which holds about 27 per cent of China's NEV market, are now delivering the sort of excitement that Tesla used to in terms of looks, range and driver assistance features – and at lower prices. Xiaomi, the smartphone maker, is in the process of launching the YU7, a high-tech, fast-charging electric SUV that resembles a Porsche or Ferrari but is perhaps best pictured as a Model Y-seeking missile. In an alternate dimension, China would serve as a hothouse laboratory for Tesla to hone world beating, profitable EVs that might even be exported to its home market. In the dimension we've got, Musk has seemingly lost his ambition to develop brand new, affordable EVs that can compete across the world. AN ERODED POSITION Tesla's last genuinely new model, the Cybertruck, is certainly big but only about as 'beautiful' as the Trump tax Bill that Musk now openly derides as an ' abomination '. While Tesla sits apart from the legacy automakers in the US, Germany and Japan in many respects – certainly in terms of valuation – it has, like them, seen its position in China eroded rapidly. And regardless of Musk's latest posts on X, he worked hard to secure the election of a president and Congressional majority intent on crushing EV sales in the US. With the end of the second quarter approaching, and the sales figures emanating from China and Europe portending another set of weak earnings, it is perhaps little wonder that this narrative is crowded out by all manner of other things. Musk, who ditched Tesla's public relations team and routinely denounces the media as 'propaganda' has nonetheless plunged into a media blitz of late, and has now whipped up a new political intrigue. Is the break with Trump real? My litmus test: watch out if @elonmusk posts a picture of a taco. Plus, of course, we have the imminent launch of Tesla's self-driving cars in Austin. Whatever they actually turn out to be, with the always dubious narrative of Musk's White House job boosting Tesla's fortunes now played out, those robotaxis constitute the main pillar supporting Tesla's triple-digit earnings multiple.
CNA
8 hours ago
- CNA
Referee body cams and enhanced offside detection system tested at Club World Cup
PARIS : Referees wearing body cameras and an upgraded offside detection system will be among the headline innovations at this year's Club World Cup in the United States, FIFA said on Friday. For the first time at a FIFA tournament, match officials will wear body cameras, with selected footage broadcast live to audiences. A new, advanced version of semi-automated offside technology — combining Artificial Intelligence, multiple cameras, and ball sensors — will be deployed to speed up decision-making while maintaining VAR oversight for marginal calls. "However, for challenging offside scenarios, the video assistant referee will still validate the information provided by the system before the decision is taken," FIFA said in a statement. The tournament, which expands to 32 teams this year, will serve as a major testing ground for both systems, the governing body said.
