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Circle, Issuer of USDC Stablecoin, Files for IPO
Circle Internet Financial, the organization behind USD Coin (USDC), a prominent stablecoin tied to the U.S. dollar, has confidentially submitted paperwork for an initial public offering (IPO). This marks the firm’s second attempt to list on the public markets, signaling continued interest in entering the stock exchange.
Financial Performance and IPO Details
The fintech entity, which generates revenue from interest on its reserve holdings, disclosed robust financial figures. For 2024, Circle reported revenue and reserve income totaling $1.68 billion, an increase from $1.45 billion in the preceding year. However, net income for 2024 decreased to $156 million, compared to $268 million recorded in 2023.
The company’s confidential filing indicates its intent to proceed with a public listing, although specific details regarding the IPO size and valuation remain undisclosed. Market analysts at Renaissance Capital have projected that Circle may seek to raise approximately $750 million through this offering.
Second Attempt at Public Listing
This IPO endeavor represents Circle’s renewed pursuit of becoming a publicly traded company. In 2022, the firm initially planned to go public through a merger with a special purpose acquisition company (SPAC). However, those plans were abandoned due to delays in regulatory approval from the Securities and Exchange Commission (SEC). The previous SPAC agreement had estimated Circle’s valuation at $9 billion before its termination.
Key Investors
According to the regulatory documents, several prominent investment firms hold significant stakes in Circle. Investors with ownership exceeding 5% include Accel, General Catalyst, Breyer Capital, IDG Capital, and Oak Investment Partners.
USDC Market Presence
The filing also revealed that the value of USDC in circulation currently stands at $60 billion, underscoring its significant presence in the stablecoin market and the broader cryptocurrency ecosystem.
Favorable Crypto Environment
Circle is advancing its IPO plans amidst a generally perceived positive sentiment towards digital assets, particularly with the current administration’s seemingly supportive stance on the crypto industry.