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CNBC
12 hours ago
- Business
- CNBC
Stablecoin issuer Circle prices IPO at $31 per share, above expected range, ahead of NYSE debut
Circle Internet Group, the issuer of one of the world's biggest stablecoins, priced its initial public offering at $31 per share late Wednesday, above the expected range of $27-28 and giving the company a total market value of $6.8 billion. New York-based Circle, its founder and some original shareholders will raise $1.05 billion in the offering of 34 million shares. In a measure of enormous demand for the crypto company, Circle increased the number of shares sold in the IPO from 32 million after the market closed Wednesday. Originally, Circle had sought to raise just $624 million by selling 24 million shares in a range of $24 to $26 per share. Circle granted its underwriters, led by JPMorgan, Citigroup and Goldman Sachs, a 30-day option to sell an additional 5.1 million shares. Circle stock will trade on the New York Stock Exchange under ticker symbol CRCL. Cathie Wood's ARK Investment Management has indicated interest in purchasing up to $150 million of the shares, according to a Securities and Exchange Commission filing. Circle, led by CEO Jeremy Allaire, is one of the earliest companies in the crypto industry and the issuer of USD Coin, commonly referred to by its ticker, USDC. It's the second largest stablecoin in the world, comprising 27% of the market, behind Tether's USDT, which dominates 67% of the stablecoin market. Headquartered in Boston until early this year, Circle earned $156 million in net income in 2024 on $1.68 billion in revenue and reserve income, down from income of $268 million on $1.45 billion in revenue in 2023. The tech IPO market has shown signs of life this quarter after an extended drought dating back to early 2022. Investors are watching new offerings as tests of the market's readiness for new offerings. Brokerage platform eToro filed in March to go public this year, joining Klarna and Stubhub. At the time, IPOs looked set to benefit from President Trump's return to the White House, but all three companies ended up shelving those initial plans as tariff developments soon rocked the capital markets. Since finally debuting last month, EToro is up 25%, while shares of artificial intelligence infrastructure provider CoreWeave have more than doubled since the company's March IPO. In the past month, digital health company Omada Health and fintech company Chime have also filed to go public. Circle will become one of the most prominent pure play crypto companies to list in the U.S. Unlike eToro, Robinhood, Block, or even Strategy, Circle's entire business is stablecoins – cryptocurrencies that are backed by another asset, usually the dollar. The tokens are designed to bring the stability of traditional currencies to blockchain networks, whose speed and efficiency in transferring money has become attractive to global financial institutions. Stablecoins are also widely regarded as crypto's killer app. Historically, Stablecoins' main function was in trading but now companies that are outside the traditional crypto universe are eyeing what JMP Citizens calls a post regulatory land grab that could see exponential growth to $3 trillion in the next five years. Stablecoin momentum is exploding this year, thanks to new interest from banks and payment firms as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes progress on passing stablecoin legislation, possibly as early as August. Circle's USDC coin is likely to be favored by institutions largely because of Circle's emphasis on regulatory compliance. The company was the first to receive a New York State BitLicense, which is famously difficult to obtain, in 2015. As banks, payments companies and financial technology firms eye a move into stablecoins, that commitment to compliance may serve as an advantage for Circle.
CNBC
13 hours ago
- Business
- CNBC
Stablecoin issuer Circle prices IPO at $31, above expected range, ahead of NYSE debut
Circle Internet Group, the issuer of one of the world's biggest stablecoins, priced its initial public offering at $31 per share late Wednesday, above the expected range of $27-28 and giving the company a total market value of $6.8 billion. New York-based Circle, its founder and some original backers will raise $1.05 billion in the offering of 34 million shares. In a measure of enormous demand for the crypto company, Circle increased the number of shares sold in the IPO from 32 million after the market closed Wednesday. Originally, Circle had sought to raise just $624 million by selling 24 million shares in a range of $24 to $26 per share. Circle granted its underwriters, led by JPMorgan, Citigroup and Goldman Sachs, a 30-day option to sell an additional 5.1 million shares. Circle stock will trade on the New York Stock Exchange under ticker symbol CRCL. Cathie Wood's ARK Investment Management has indicated interest in purchasing up to $150 million of the shares, according to a Securities and Exchange Commission filing. Circle is one of the earliest companies in the crypto industry and the issuer of USD Coin, commonly referred to by its ticker, USDC. It's the second largest stablecoin in the world, comprising 27% of the market, behind Tether's USDT, which dominates 67% of the stablecoin market. Headquartered in Boston until early this year, Circle earned $156 million in net income in 2024 on $1.68 billion in revenue and reserve income, down from income of $268 million on $1.45 billion in revenue in 2023. The tech IPO market has shown signs of life this quarter after an extended drought dating back to early 2022. Investors are watching new offerings as tests of the market's readiness for new offerings. Brokerage platform eToro filed in March to go public this year, joining Klarna and Stubhub. At the time, IPOs looked set to benefit from President Trump's return to the White House, but all three companies ended up shelving those initial plans as tariff developments soon rocked the capital markets. Since finally debuting last month, EToro is up 25%, while shares of artificial intelligence infrastructure provider CoreWeave have more than doubled since the company's March IPO. Circle will become one of the most prominent pure play crypto companies to list in the U.S. Unlike eToro, Robinhood, Block, or even Strategy, Circle's entire business is stablecoins – cryptocurrencies that are backed by another asset, usually the dollar. The tokens are designed to bring the stability of traditional currencies to blockchain networks, whose speed and efficiency in transferring money has become attractive to global financial institutions. Stablecoins are also widely regarded as crypto's killer app. Historically, Stablecoins' main function was in trading but now companies that are outside the traditional crypto universe are eyeing what JMP Citizens calls a post regulatory land grab that could see exponential growth to $3 trillion in the next five years. Stablecoin momentum is exploding this year, thanks to new interest from banks and payment firms as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes progress on passing stablecoin legislation, possibly as early as August. Circle's USDC coin is likely to be favored by institutions largely because of Circle's emphasis on regulatory compliance. The company was the first to receive a New York State BitLicense, which is famously difficult to obtain, in 2015. As banks, payments companies and financial technology firms eye a move into stablecoins, that commitment to compliance may serve as an advantage for Circle.
Yahoo
3 days ago
- Business
- Yahoo
BlackRock Reportedly To Take 10% Of Circle IPO: Major Asset Manager Doubles Down on Stablecoin Strategy
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. BlackRock (NYSE:BLK), the world's largest asset manager, is planning to acquire approximately 10% of Circle Internet Group's initial public offering, representing a significant vote of confidence in the stablecoin sector, according to Bloomberg. Circle, the issuer of USDC (USD Coin), is seeking to raise up to $624 million in what appears to be an oversubscribed offering set to price on June 4. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Offering Size and Demand: Target raise: Up to $624 million BlackRock stake: ~10% of shares offered Ark Investment Management: Up to $150 million interest Existing Business Relationship: BlackRock manages Circle's government money market fund The Circle Reserve Fund holds $30 billion in net assets as of April 2024 This fund backs 90% of USDC stablecoin reserves For BlackRock: This investment represents more than financial returns—it's a strategic positioning move. BlackRock already manages the reserves backing USDC, making this equity stake a natural extension of their existing relationship. The investment aligns with BlackRock's broader crypto strategy, including their successful Bitcoin ETF launch. For Circle: The backing from both BlackRock and Ark Investment provides institutional credibility crucial for a crypto company going public. Having established asset managers as cornerstone investors should help stabilize the stock post-IPO and attract additional institutional interest. The timing appears opportune for crypto companies seeking public market access. The current political environment under President Donald Trump has created a more favorable regulatory landscape for digital assets. Proposed legislation requiring stablecoins to be backed by cash and safe assets—exactly Circle's model—could provide competitive advantages over less regulated competitors. Trending: New to crypto? on Coinbase. Regulatory Evolution: While the current environment appears favorable, crypto regulations remain in flux. Future policy changes could impact stablecoin operations and profitability. Market Volatility: Crypto-related stocks typically exhibit higher volatility than traditional financial services companies. Investors should expect significant price swings. Competition Intensifying: The stablecoin market faces increasing competition from both crypto-native companies and traditional financial institutions exploring central bank digital currencies. This deal represents the continued convergence of traditional finance and cryptocurrency. For retail investors, Circle's IPO offers exposure to the growing stablecoin market through a regulated, public company structure. However, investors should carefully consider their risk tolerance and the speculative nature of crypto-adjacent investments. The strong institutional backing suggests professional investors see long-term value in Circle's business model, but past performance in crypto markets demonstrates that institutional interest doesn't guarantee steady returns. BlackRock's planned investment in Circle reflects the asset manager's conviction that stablecoins will play an increasingly important role in the financial system. For the broader market, this deal signals continued institutional adoption of crypto infrastructure, potentially paving the way for more traditional finance companies to deepen their cryptocurrency exposure through regulated, public market vehicles. Read Next: A must-have for all crypto enthusiasts: . Image: Shutterstock Send To MSN: 0 This article BlackRock Reportedly To Take 10% Of Circle IPO: Major Asset Manager Doubles Down on Stablecoin Strategy originally appeared on
Yahoo
28-05-2025
- 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
27-05-2025
- Business
- Yahoo
USDC Stablecoin Issuer Circle Launches IPO
Circle, the company behind the USDC stablecoin, said it plans to sell shares at $24 to $26 each in its IPO. The move would raise as much as $624 million for the company and its backers. Circle's USD Coin is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. Treasury Internet Group, the company behind the USDC stablecoin, said it will offer shares at $24 to $26 each in an initial public offering that would raise as much as $624 million for the company and its backers. Circle and other selling stockholders plan to sell 24 million shares, which could rise to 27.6 million shares if the IPO's underwriters fully exercise an option to purchase additional stock. The company said it plans to list on the New York Stock Exchange under ticker symbol CRCL. Circle, which had previously announced plans to go public in 2021 via a SPAC merger, said its net income last year was $155.7 million, down from $267.5 million a year earlier. It had $1.68 billion in revenue and reserve income in 2024, versus $1.45 billion in 2023. The company's USD Coin is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. Treasury securities. The stable coin operator is diving into a volatile IPO market. Retail trading platform eToro (ETOR) priced its IPO last month above its expected range, and its shares soared on opening day. Nvidia (NVDA)-backed cloud computing firm CoreWeave (CRWV) meanwhile ended up with a price below its range estimates in March, although the stock has jumped in the months since and is on pace to close Tuesday at a record high. However, buy-now-pay-later platform Klarna reportedly halted its planned IPO in the wake of President Donald Trump's sweeping tariffs announcement, according to a report. Read the original article on Investopedia 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
