5-6-2025 – Circle, the issuer of the prominent stablecoin USDC, has set the price for its initial public offering at $31 per share, securing an impressive $1.1 billion through an expanded deal that surpassed initial projections. This strategic flotation, announced on Wednesday, positions Circle as a formidable player in the digital finance arena, with shares poised to commence trading on the New York Stock Exchange under the ticker CRCL on Thursday.
The offering places Circle’s valuation at $6.9 billion based on its current share count, with a fully diluted valuation soaring to $8.1 billion when factoring in options and warrants. This robust financial milestone follows a surge in investor enthusiasm, which prompted Circle to elevate its share price range from an initial $24–$26 to $27–$28 earlier this week, before settling at the higher end. Ultimately, Circle and its selling shareholders offloaded 34 million shares, an increase from the 32 million projected earlier in the week and a significant leap from the original target of 24 million.
Circle’s flagship stablecoin, USDC, commands a substantial 24.5% share of the stablecoin market, with $61.5 billion in circulation, as reported by CoinGecko. The company’s financial transparency is bolstered by its partnership with BlackRock, which oversees a $53.3 billion reserve fund backing USDC. Sources cited by Bloomberg indicate that BlackRock intends to acquire 10% of the IPO shares, underscoring confidence in Circle’s market position. Additionally, ARK Invest has signalled its intent to purchase up to $150 million in shares, further highlighting the offering’s appeal.
Financially, Circle reported a net income of $156 million on revenues of $1.68 billion for 2024, according to its April S-1 filing. While this marks a decline from the previous year’s net income of $268 million, the figures reflect Circle’s steady growth and operational resilience in a dynamic market. Since securing a New York BitLicense in 2015, Circle has established itself as a leader in regulatory compliance within the cryptocurrency industry, a reputation that sets it apart in a competitive landscape.
However, like its chief rival Tether, issuer of the leading stablecoin USDT, Circle has yet to commission a comprehensive audit of its reserves. Instead, it relies on monthly attestations from Deloitte, one of the Big Four accounting firms, to confirm that its reserves adequately back the USDC in circulation. This practice, while standard in the industry, has drawn scrutiny as investors seek greater transparency.
