June 5, 2025: Circle IPO Sees Overwhelming Fundraising, Is the Cryptocurrency Outlook Bright?
Stablecoin issuer Circle has once again raised its offering price in its initial public offering (IPO), increasing the target fundraising amount to $1.05 billion. The company plans to debut on the New York Stock Exchange (NYSE) on June 5, issuing 34 million shares at a price of $31 per share.
Previously, Circle had raised its IPO size twice. Initially, the company intended to issue 24 million shares, with a pricing range between $24 and $26 per share. Subsequently, the offering size was increased to 32 million shares, with a price range set at $27 to $28 per share.
The latest pricing surpasses prior market expectations, demonstrating strong demand for Circle.
Additionally, Circle has granted underwriters a 30-day option to purchase an additional 5.1 million shares. According to its filing submitted to the U.S. Securities and Exchange Commission (SEC) on June 2, the latest pricing for this IPO will give Circle a valuation of $6.9 billion, based on its over 220 million shares outstanding.
Circle currently has no plans to pay dividends to shareholders and intends to retain all available funds and future earnings to fund business development and expansion.
According to foreign media outlet Cointelegraph, asset management giant BlackRock has expressed interest in acquiring at least 10% of Circle’s shares following its public listing.
Based on the previous pricing of $27 per share, Circle expects to net $319 million, of which $111 million will be used to cover tax withholding and remittance obligations, with the remainder 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 its IPO process on the New York Stock Exchange (NYSE), aiming to raise over $570 million, with a target valuation of up to $6.7 billion. This is not only a significant milestone for Circle but also represents the active integration of the cryptocurrency industry, especially stablecoins, into traditional financial markets, pursuing greater transparency and compliance.
Circle CEO Jeremy Allaire emphasized that the listing is aimed at achieving “maximum transparency and accountability,” complying with the stringent regulatory requirements for U.S. public companies. This stands in stark contrast to statements made by Tether (USDT issuer) CEO Paolo Ardoino, who claimed that “Tether does not need to go public.” This reflects significant differences in corporate development strategies and attitudes toward public markets 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 Up to $6.7 Billion
The issuer of the USDC stablecoin, 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 listing on the New York Stock Exchange (NYSE) under the ticker symbol CRCL. This IPO is expected to raise approximately $576 million to $624 million, with a target valuation up to $6.71 billion.
The so-called Class A common stock is a type of stock issued by a company, typically having higher voting rights than other common stock classes (such as Class B or Class C). The primary reason for this is to allow the founders or management of the company to maintain control even after 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 3.6 million additional shares of Class A common stock to address any over-allotment.
In simple terms, the stock source for Circle’s IPO will come partly from new shares issued by the company for fundraising and partly from existing shareholders cashing out, while underwriters hold flexibility to adjust stock supply after the listing to stabilize market prices.
This IPO has attracted participation from several major U.S. investment banks, including JPMorgan Chase, Citigroup, and Goldman Sachs, serving 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 expects the IPO stock price to range between $24 and $26 per share. While Circle will not receive any proceeds from the Class A common stock sold by existing shareholders, the progress of its IPO remains affected by market conditions.
Notably, prominent investors in the cryptocurrency sector, such as ARK Invest led by Cathie Wood, have expressed interest in purchasing up to $150 million in IPO shares.
Stablecoin Leader Circle Knock on Wall Street: Can USDC Listing Lead a New Era of Compliance in the Cryptocurrency World?
Founded in 2013, Circle is a significant player in the cryptocurrency sector, known for issuing the world’s second-largest stablecoin, USDC. As of now, USDC has a market capitalization of approximately $61.5 billion. Although still trailing its main competitor Tether’s USDT (with a market cap of about $152.7 billion), USDC has seen a 40% growth in market capitalization this year, surpassing Tether’s 10% growth.
Circle co-founder and CEO Jeremy Allaire stated in his 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. Following the listing, the company will be required to comply with the stringent reporting and governance requirements of U.S. regulators, particularly the SEC, and Circle is willing to accept these challenges, viewing them as an essential step toward fulfilling its commitment to “public transparency and responsible operations.”
Although Tether currently dominates the stablecoin market, its CEO Paolo Ardoino stated in April on the X platform that Tether does not need to go public.
This Circle IPO may also hold significant investment implications for Coinbase. As a co-founder of USDC and a primary distribution channel, Coinbase has signed a revenue-sharing agreement with Circle, receiving 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 in 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 dollars. Furthermore, the argument that stablecoins help maintain the dollar’s dominance is becoming increasingly prominent, as they can push the dollar’s utility internationally and ensure demand for U.S. government debt, which underpins nearly all dollar-denominated stablecoins.
With the U.S. Congress expected to pass and implement its first cryptocurrency legislation targeting stablecoins this year, the development momentum in the stablecoin sector is strong. Last week, the Senate voted to advance the first cryptocurrency bill, establishing a regulatory framework for stablecoins. U.S. President Trump has also stated that he hopes to send the cryptocurrency regulatory bill to his desk for signing before Congress adjourns in August.
Reference: Cointelegraph, CNBC