June 5, 2025: Circle IPO Raises Big Funds, Bright Future for Cryptocurrency?
The stablecoin issuer Circle has once again raised its IPO issuance price, increasing its target fundraising amount to $1.05 billion. The company plans to debut on the New York Stock Exchange (NYSE) on June 5, offering 34 million shares at a price of $31 each.
Previously, Circle had adjusted its IPO size twice. Initially, the company planned to issue 24 million shares with a price range of $24 to $26 per share. This was later raised to 32 million shares with a price range set at $27 to $28 per share.
The latest pricing surpasses prior market expectations, indicating strong demand for Circle.
Additionally, Circle has granted underwriters a 30-day option to purchase an additional 5.1 million shares. According to documents filed with the U.S. Securities and Exchange Commission (SEC) on June 2, the latest IPO pricing will value Circle at $6.9 billion, based on its outstanding shares exceeding 220 million.
Circle currently has no plans to pay dividends to shareholders and intends to retain all available funds and future profits to support business development and expansion.
According to foreign media outlet Cointelegraph, asset investment giant BlackRock has expressed interest in purchasing at least 10% of Circle’s shares after its public listing.
Based on the previous $27 per share pricing, Circle expects to achieve a net gain of $319 million, of which $111 million will be used to cover tax withholdings and remittance obligations. The remaining funds will be invested in new product development, business expansion, and potential acquisitions.
What Happened?
As the issuer of the second-largest stablecoin USDC, Circle has officially initiated the IPO process on the New York Stock Exchange (NYSE), aiming to raise over $570 million, with a target valuation looking at $6.7 billion. This is not only a significant milestone for Circle’s development but also represents the cryptocurrency industry, particularly stablecoins, actively integrating into traditional financial markets in pursuit of higher transparency and compliance.
Circle CEO Jeremy Allaire emphasized that the listing aims for “the highest level of transparency and accountability,” accepting the stringent regulatory requirements for U.S. public companies. This stands in stark contrast to the statement by Tether (the issuer of USDT) CEO Paolo Ardoino that “Tether does not need to go public.” This reflects significant differences in corporate development strategies and attitudes towards the public market between the two major stablecoin issuers.
As the regulatory framework for stablecoins in the U.S. becomes increasingly clear, Circle’s IPO is expected to enhance the market recognition and application scope of stablecoins.
Circle Officially Launches IPO Process, Target Valuation Looking at $6.7 Billion
The issuer of the stablecoin USDC, Circle, officially launched its initial public offering (IPO) process on May 27, planning to issue 24 million shares of Class A common stock and applying for a listing on the New York Stock Exchange (NYSE) under the ticker symbol CRCL. The IPO is expected to raise approximately $576 million to $624 million, with a target valuation looking at $6.71 billion.
Class A common stock refers to a type of stock issued by a company that typically has higher voting rights compared to other common stocks issued by the company (such as Class B or Class C common stock). The main reason for this is to allow the company’s founders or management to maintain control over the company after it goes public, even if shares are sold to the public, ensuring that decision-making power is not easily diluted.
Circle stated that 9.6 million shares of Class A common stock will be issued by the company, while the remaining 14.4 million shares will be sold by existing shareholders. Additionally, underwriters will have a 30-day option to purchase up to an additional 3.6 million shares of Class A common stock to cover over-allotments.
In simple terms, the stock source for Circle’s IPO will partly come from new shares issued by the company for fundraising and partly from existing shareholders cashing out, while underwriters will have flexibility to adjust stock supply post-listing to stabilize market prices.
This IPO has attracted participation from several major U.S. investment banks, including JPMorgan Chase, Citigroup, and Goldman Sachs as joint lead underwriters. European banks such as Barclays, Deutsche Bank Securities, and Société Générale will also act as underwriters.
According to the prospectus, Circle anticipates the IPO share price to be between $24 and $26 per share. Although Circle will not receive any proceeds from the Class A common stock sold by existing shareholders, the progress of its IPO is still subject to market conditions.
Notably, prominent investors in the cryptocurrency space, such as ARK Invest led by Cathie Wood, have expressed interest in purchasing up to $150 million of IPO shares.
Stablecoin Leader Circle Knocks on Wall Street: Can the USDC Listing Trend Lead to Compliance in the Crypto Space?
Founded in 2013, Circle is a significant player in the cryptocurrency industry, known for issuing the world’s second-largest stablecoin, USDC. As of now, USDC has a market capitalization of approximately $61.5 billion. Although it still lags behind its primary competitor Tether’s USDT (with a market capitalization of about $152.7 billion), USDC’s market cap has grown by 40% this year, surpassing Tether’s 10% growth.
Circle co-founder and CEO Jeremy Allaire stated in the company’s S-1 filing letter that Circle chose to list on the New York Stock Exchange because they believe it will allow the company to achieve the highest standards of transparency and accountability. After going public, the company will have to comply with strict reporting and governance requirements from U.S. regulatory agencies, particularly the SEC, and Circle is willing to accept these challenges, viewing them as an important step in fulfilling its commitment to “operate transparently and responsibly.”
While Tether currently dominates the stablecoin market, its CEO Paolo Ardoino stated on the X platform in April that Tether does not need to go public.
This IPO from Circle could also hold significant investment implications for Coinbase. As a co-founder of USDC and a major distribution channel, Coinbase has a revenue-sharing agreement with Circle, allowing it to earn a portion of the interest generated from USDC products on the Coinbase platform. Coinbase CEO Brian Armstrong has previously stated that developing USDC into the world’s largest stablecoin is a “grand goal” for Coinbase.
Stablecoins are primarily used for trading and as collateral for decentralized finance (DeFi), and cryptocurrency investors closely monitor them to gauge market demand, liquidity, and activity. Recently, stablecoins have gained popularity among banks and fintech companies due to their ability to facilitate rapid and inexpensive cross-border transfers of U.S. dollars. Additionally, there are increasing assertions that stablecoins help maintain the dollar’s dominance, as they can extend the dollar’s utility internationally and ensure demand for almost all dollar-denominated stablecoins that rely on U.S. government debt.
With the U.S. Congress expected to pass and implement its first cryptocurrency legislation pertaining to stablecoins this year, the development momentum in the stablecoin sector is strong. Last week, the Senate also voted to advance the first cryptocurrency bill, establishing a regulatory framework for stablecoins. U.S. President Trump has also expressed the desire to have the cryptocurrency regulatory bill on his desk for signature before the August congressional recess.
References: cointelegraph, cnbc