Stablecoin issuer Circle prices IPO at $31 per share, above expected range, ahead of NYSE debut

Circle Internet Group, the creator of one of the largest stablecoins globally, set the price for its initial public offering at $31 per share on Wednesday night, exceeding the expected range of $27 to $28. This pricing values the company at $6.8 billion.

The New York-based Circle, along with its founder and some initial shareholders, is set to raise $1.05 billion through the sale of 34 million shares. Reflecting high demand for the crypto firm, Circle increased the number of shares offered in the IPO from 32 million after the market closed on Wednesday. Initially, Circle had aimed to raise $624 million by selling 24 million shares within a price range of $24 to $26 per share.

Circle has granted its underwriters, including JPMorgan, Citigroup, and Goldman Sachs, a 30-day option to sell an additional 5.1 million shares. The company’s stock will trade on the New York Stock Exchange under the ticker symbol “CRCL.”

ARK Investment Management, led by Cathie Wood, has expressed interest in purchasing up to $150 million worth of shares, as per a Securities and Exchange Commission filing.

Led by CEO Jeremy Allaire, Circle is among the early players in the crypto industry and the issuer of USD Coin (USDC), the second-largest stablecoin globally, accounting for 27% of the market share, trailing behind Tether’s USDT, which holds 67% of the stablecoin market.

Based in Boston until earlier this year, Circle reported $156 million in net income in 2024 from $1.68 billion in revenue and reserve income, a slight decrease from the $268 million income generated in 2023 from $1.45 billion in revenue.

The technology IPO market has shown signs of revival this quarter following a prolonged lull since early 2022. Investors are closely monitoring new offerings to gauge the market’s readiness for fresh opportunities.

eToro, a brokerage platform, filed for a public listing this year in March, joining Klarna and Stubhub. While IPO prospects initially seemed favorable with President Trump’s return to the White House, these plans were put on hold as tariff developments unsettled the capital markets. EToro, which recently went public, has seen a 25% increase in its shares, while CoreWeave, an artificial intelligence infrastructure provider, has more than doubled in value since its March IPO. Other companies like Omada Health and Chime have also filed to go public in the last month.

Circle will emerge as one of the prominent pure-play crypto companies to be listed in the United States. Unlike eToro, Robinhood, or Block, Circle’s primary focus is on stablecoins, which are cryptocurrencies backed by other assets, typically the dollar. Stablecoins aim to bring the stability of traditional currencies to blockchain networks, appealing to global financial institutions due to their efficient money transfer capabilities.

Stablecoins are regarded as a significant application within the crypto space, with their primary use historically being in trading. However, companies beyond the conventional crypto realm are eyeing the potential for exponential growth in stablecoins, projected to reach $3 trillion in the next five years, in what JMP Citizens terms a post-regulatory land grab.

The momentum of stablecoins has surged this year, driven by increased interest from banks and payment firms, as the Trump administration reverses stringent Biden-era crypto policies and Congress makes strides in stablecoin legislation, potentially by August.

The USDC coin by Circle is expected to be favored by institutions, mainly due to Circle’s strong emphasis on regulatory compliance. Being the first company to secure a New York State BitLicense in 2015, a notable achievement, Circle’s commitment to compliance could give it a competitive edge as banks, payment firms, and fintech companies consider venturing into stablecoins.