Circle Prepares for IPO and Achieves Significant Valuation

For the largest companies in this field, the next step is going public, and some mining companies have achieved this with Coinbase. Going public will also bring tighter, regular audits, which is beneficial for investors. Soon, we will see one of the largest stablecoin companies go public.

Circle IPO

Circle Internet Financial is already the issuer of one of the largest stablecoins, USDC. Recently, the company received a MiCA-compliant service license, becoming the first global stablecoin company in Europe.

According to sources familiar with the matter, Circle reached a certain valuation before the IPO. Sources say the company will reach a valuation between $5 billion and $5.25 billion based on share pricing.

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The second-largest stablecoin, USDC, experienced turbulent days, especially during the discounted sale of low-interest bonds due to the bankruptcy of banks. However, it managed to recover quickly. Before the planned IPO, Circle allows trading of some shares in the secondary market. Most of the sellers are company employees. However, shares are not allowed to be sold below a $5 billion valuation.

Crypto Company IPO

In 2022, a valuation of around $9 billion was mentioned, but now figures of $5 billion are being discussed for shares. Due to the FTX collapse, the agreement with a special purpose acquisition company (SPAC) named Concord Acquisition Corp was shelved at that time. The SEC was vowing revenge due to the nightmare SBF caused for US citizens.

According to sources, the $5 billion valuation is a floor set for secondary market sales, so there is no cause for concern. When approvals for the actual stock exchange listing come, a valuation target of $9 billion may be seen again.

A report published earlier this year mentioned that the number of wallets with a balance over $10 had reached 2.7 million, an increase of nearly 60% compared to the previous year. This is a positive detail for Circle’s valuation, along with the strong increase in USDC adoption.

Circle submitted the S-1 Form to the SEC before the IPO (January 2024) and took steps to move its headquarters from Ireland to the US.