Latest news with #JeremyAllaire
Yahoo
6 days ago
- Business
- Yahoo
Circle files for IPO
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Stablecoin issuer Circle Internet Group filed S-1 paperwork with the Securities and Exchange Commission Monday for an initial public offering. The New York-based fintech intends to raise $624 million through the sale of its 24 million shares of Class A common stock at a price range of $24 to $26, at a nearly $6 billion valuation, according to the amended SEC filing. Circle plans to list its shares on the New York Stock Exchange under the ticker symbol CRCL. Circle's IPO comes close on the heels of fintechs eToro and Chime, both of which filed paperwork related to their public offerings earlier this month, suggesting market conditions appear favorable to go public. eToro, a social investment fintech founded in Israel, said it intended to raise $500 million through its public offering. eToro's stock opened at $69.69, which was 34% above its IPO, and closed at roughly $67 per share, bringing its total market capitalization to more than $5.4 billion. Chime, for its part, said the number of shares to be offered and the price range for the proposed offering had not yet been decided. 'In many respects, Circle has for a long time been under intense public scrutiny — the demands of operating an always-on, regulated digital dollar infrastructure require that Circle operates with high levels of transparency —as well as significant regulatory supervision by government agencies spanning the United States and the world,' Circle's co-founder and CEO, Jeremy Allaire said in the filing. The fintech that doesn't 'fit in a box' from a public market perspective is a mix of a payments company, a financial institution, and a consumer internet and platform software company, according to Allaire. 'Going public now is representative of the fact that we are at a significant crossroads for Circle and the development of the internet financial system,' Allaire wrote Monday. 'While we are proud and confident about our ability to pursue this opportunity, our future (like our past) is rife with uncertainties and risks that we must navigate successfully,' he wrote. The potential offering values the company at roughly $5.65 billion at the top end of the price range, but when accounting for stock options and restricted share units, the valuation would be about $6.7 billion, according to Bloomberg. Circle was co-founded by Allaire and Sean Neville in 2013. There was around $60 billion of Circle's USD Coin in circulation as of the end of March, according to an SEC filing. Days prior to filing IPO paperwork, Circle denied a report it was in talks to sell to Coinbase Global or Ripple. Circle has been pursuing an IPO since 2021. An original agreement announced in July 2021 was revised the following year, thereby delaying the company's IPO and renegotiating its original agreement with special-purpose acquisition company Concord Acquisition, doubling Circle's enterprise value from $4.5 billion to $9 billion. The revised valuation was due the circulation of USDC more than doubling after the deal was first announced. However, that $9 billion deal fell apart in December 2022. Circle said in Monday's filing that Cathie Wood's Ark Investment Management has expressed interest in buying up to $150 million of the shares that are offered. Circle also said it will give underwriters 30 days to purchase an additional 3.6 million Class A common stock to cover over-allotments. BlackRock reportedly plans to buy a 10% stake in Circle's IPO, some people familiar with the matter told Bloomberg. Circle estimates the net proceeds from the offering to be roughly $213.2 million or $298 million if the underwriters exercise their option. The fintech plans to utilize nearly $101 million of the net proceeds to satisfy tax withholding and remittance obligations related to vesting and net settlement of certain outstanding restricted stock units previously granted to its employees, and the remainder for general corporate purposes. Last week, the company launched Circle Payments Network, a new service that aims to connect eligible banks, neobanks, payment service providers and digital wallets to process payments instantly across borders using stablecoins like USDC. The company noted that banks and neobanks play an increasingly important role in the Circle stablecoin ecosystem, providing settlement and reserve infrastructure. 'We are seeing growth in startup banks and neo-banks in many emerging markets focused on providing digital dollar payment and settlement services using USDC and the Circle stablecoin network,' Circle said in the filing. The latest IPO filing occurs as the cryptocurrency and digital asset regulatory landscape in the U.S. evolves following the election of President Donald Trump. In January, the SEC launched a crypto task force dedicated to developing a comprehensive and transparent regulatory framework for digital assets. Following the task force announcement, Trump signed an executive order establishing a new working group on digital asset markets. Circle is hopeful that a comprehensive regulatory framework for payment stablecoins will be established, it said in the filing. While the final version of the Guiding and Establishing National Innovation for U.S. Stablecoins Act is not published yet, any version of the law 'should drastically increase the odds of successful crypto company IPOs,' since market participants are looking forward to certainty and stability that would be provided by implementation of a federally-authorized regulatory framework, Patrick Hanchey, a partner at law firm Alston & Bird noted. 'I don't foresee any circumstances where the establishment of a formal regulatory regime around stablecoin could slow or discourage market participation in this sector, especially under the current administration,' Hanchey said in an email response. The IPO is being led by JPMorgan Chase, Citi and Goldman Sachs. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
BlackRock Said to Plan to Buy Shares in Circle Internet IPO
(Bloomberg) -- BlackRock Inc. plans to acquire about 10% of the shares offered in Circle Internet Group Inc.'s initial public offering, according to people familiar with the matter, as the worlds of traditional finance and cryptocurrency continue to deepen their ties. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight The stablecoin issuer and some of its shareholders including co-founder and Chief Executive Officer Jeremy Allaire are seeking to raise as much as $624 million in the offering, according to a US Securities and Exchange Commission filing Tuesday. Cathie Wood's Ark Investment Management has indicated an interest in buying as much as $150 million of shares in the offering, the filing shows. Circle's IPO has received orders for multiple times the number of shares available, Bloomberg News has reported. The deal is set to price on June 4. BlackRock manages a government money market fund on Circle's behalf that holds 90% of the reserves backing its USDC stablecoin, according to the filing. The Circle Reserve Fund has a balance of $53.5 billion as of May 22, according to the company's website. Details of the offering may change, and BlackRock could acquire the stake through a vehicle or other affiliated entity or opt against a deal, the people said, asking not to be identified as the information isn't public. Representatives for BlackRock and Circle declined to comment. Crypto companies are increasingly tying their fortunes to the public markets in the US, as President Donald Trump and his allies in government embrace the industry, conferring a degree of legitimacy. Proposed regulations working their way through the US House and Senate would require stablecoins to be backed by cash and safe assets. --With assistance from Silla Brush. (Updates Circle Reserve Fund balance in fourth paragraph.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
BlackRock Is Said to Plan to Buy Shares in Circle Internet IPO
(Bloomberg) -- BlackRock Inc. plans to acquire about 10% of the shares offered in Circle Internet Group Inc.'s initial public offering, according to people familiar with the matter, as the worlds of traditional finance and cryptocurrency continue to deepen their ties. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight The stablecoin issuer and some of its shareholders including co-founder and Chief Executive Officer Jeremy Allaire are seeking to raise as much as $624 million in the offering, according to a US Securities and Exchange Commission filing Tuesday. Cathie Wood's Ark Investment Management has indicated an interest in buying as much as $150 million of shares in the offering, the filing shows. Circle's IPO has received orders for multiple times the number of shares available, Bloomberg News has reported. The deal is set to price on June 4. BlackRock manages a government money market fund on Circle's behalf that holds 90% of the reserves backing its USDC stablecoin, according to the filing. The Circle Reserve Fund held nearly $30 billion in net assets as of April 30, 2024, the filing shows. Details of the offering may change, and BlackRock could acquire the stake through a vehicle or other affiliated entity or opt against a deal, the people said, asking not to be identified as the information isn't public. Representatives for BlackRock and Circle declined to comment. Crypto companies are increasingly tying their fortunes to the public markets in the US, as President Donald Trump and his allies in government embrace the industry, conferring a degree of legitimacy. Proposed regulations working their way through the US House and Senate would require stablecoins to be backed by cash and safe assets. --With assistance from Silla Brush. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
BlackRock Is Said to Plan to Buy Shares in Circle Internet IPO
By and Anthony Hughes Save BlackRock Inc. plans to acquire about 10% of the shares offered in Circle Internet Group Inc. 's initial public offering, according to people familiar with the matter, as the worlds of traditional finance and cryptocurrency continue to deepen their ties. The stablecoin issuer and some of its shareholders including co-founder and Chief Executive Officer Jeremy Allaire are seeking to raise as much as $624 million in the offering, according to a US Securities and Exchange Commission filing Tuesday. Cathie Wood's Ark Investment Management has indicated an interest in buying as much as $150 million of shares in the offering, the filing shows.
CNBC
27-05-2025
- Business
- CNBC
Stablecoin issuer Circle kicks off its IPO, targeting a nearly $6 billion valuation
Circle, the issuer of the popular USDC stablecoin, has begun its long-awaited initial public offering process, looking to raise about $624 million at a valuation around $6 billion. The company, led by CEO Jeremy Allaire, said Thursday in a filing that it plans to sell 24 million shares of Class A common stock in total – 9.6 million to be sold by the company and another another 14.4 million by existing shareholders – at an expected price range of $24 to $26 apiece, which values the company at around $5.65 billion. Circle also said it will grant the underwriters a 30-day option to purchase up to 3.6 million additional shares. Cathie Wood's ARK Investment Management has indicated interest in purchasing up to $150 million of the shares, per the filing. Shares will be listed on the New York Stock Exchange under the ticker CRCL. Circle's IPO prospectus was filed with the Securities and Exchange Commission at the beginning of April. Circle's USD Coin (USDC) has roughly $62 billion in circulation and makes up about 27% of the total market cap for stablecoins, behind Tether's 67% dominance, according to CryptoQuant. Its market cap has grown 40% this year, however, compared with Tether's 10% growth. The stablecoin sector specifically has been ramping up as the industry gains confidence that the crypto market will get its first piece of U.S. legislation passed and implemented this year, focusing on stablecoins. Last week, the Senate voted to advance the first crypto legislation, which would create a regulatory framework for stablecoins. Trump has said he wants to see crypto regulation on his desk and ready to sign by August before Congress goes into recess. Circle's IPO could have investment implications for Coinbase, a cofounder of USDC and major distribution vehicle for the stablecoin. The crypto services company and exchange has a 50% revenue sharing agreement with Circle and also makes 100% of the interest earned by USDC products on the Coinbase platform. Coinbase CEO Brian Armstrong has said Coinbase has a "stretch goal" to make USDC the number 1 stablecoin in the world. Historically, stablecoins have been used primarily for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market. More recently, their ability to move dollars quickly and cheaply across borders has become more popular with banks and fintech companies. Additionally, rhetoric around their ability to help preserve U.S. dollar dominance – by exporting dollar utility internationally and ensuring demand for U.S. government debt, which backs nearly all dollar-denominated stablecoins – has grown louder.
