Circle, the Boston-based company that manages the USDC stablecoin, has filed for a U.S. initial public offering (IPO) in a confidential submission.
Per a recent report from Reuters, the company aims go public after a failed move to form a merger with a special-purpose acquisition company (SPAC) in 2022. The Crypto Basic reported last November that the firm was preparing to launch an IPO this year.
Circle chose not to reveal the number of shares or the price range to expect in the filing, which is subject to the approval of the SEC. The firm will complete the IPO process once the SEC completes its review.
Circle was previously valued at $9 billion in a previous deal that would have seen it go public through a SPAC, a shell company that raises funds to acquire a private company and take it public.Â
However, the deal collapsed in December 2022, due to regulatory uncertainties and market volatility. Circle CEO Jeremy Allaire expressed his disappointment at the time, but reaffirmed his intention to pursue a public listing.
Circle IPO Timing Seems Opportune
The timing of Circle’s IPO filing seems opportune, as it comes amid the recent resurgence in the crypto market, which saw a sharp decline in 2022 and 2023, as investors became more wary following the collapse of several crypto firms, including Terra, 3AC and FTX.
Circle also faced difficulties in its operations, as it announced layoffs in July 2023 and cut off investments in areas that did not involve core business operations.
Recall that Circle initiated an earlier round of layoffs in 2019 after the resignation of Sean Neville as CEO. This came shortly after it laid off 30 employees in May 2019.
Before the latest layoff round last year, Circle’s USDC stablecoin also witnessed issues in the aftermath of the Silicon Valley Bank implosion in March 2023. The firm had a $3.3 billion exposure to the bank as part of its USDC reserves, leading to a depeg of the stablecoin for a short while.
The recent decision to go public comes at a time when USDC looks to recover, with a current market cap of $25.2 billion, making it the seventh-largest crypto asset by valuation, and the second-largest stablecoin, only below Tether (USDT).
A Slew of IPOs
Notably, Circle is not the only blockchain-focused company seeking to go public in the near future as the cryptocurrency industry makes its way into traditional finance and the public sphere. Notably, the SEC recently approved all 11 spot BTC ETF filings.
Ripple, a San Francisco-based payment technology firm with close ties to the sixth-largest crypto asset XRP, also has an IPO in the works. CEO Brad Garlinghouse recently dismissed claims that the company would be launching an IPO soon amid a proposed $285 million shares buyback.
Coinbase was one of the first crypto-focused entities to go public and the first U.S. crypto exchange to do so in April 2021. The company, which trades on the Nasdaq as COIN, has enjoyed success since its IPO, attracting other participants to the scene.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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