USDC issuer Circle has confidentially filed for an initial public offering [IPO] with the intention of transitioning into a publicly traded company in the United States by early 2024. The specifics of the IPO, such as the number of shares to be offered and the proposed price range, remain undisclosed at this stage. The successful completion of the IPO is contingent on the review by the Securities and Exchange Commission [SEC] and prevailing market conditions.
As the issuer of the second-largest stablecoin globally and the seventh-largest cryptocurrency overall, according to CoinGecko, Circle’s tokens are collateralized by cash and cash equivalents, including short-term Treasury bonds.
The firm’s decision to pursue a public listing comes amidst a lengthy period of reduced deal-making activities amid elevated interest rates and market volatility. Other companies, such as Apex Fintech and Aspen Insurance, have also confidentially filed for US IPOs, signaling a potential revival in the public offering space.
This marks Circle’s third attempt at going public, with the previous attempts in 2022 through a special-purpose acquisition company [SPAC] and in 2021 with a special-purpose acquisition company named Concord Acquisition Corp. facing obstacles and ultimately being terminated. Despite the uncertainties surrounding the valuation sought in this IPO, Circle’s move aligns with its longstanding objective of becoming a publicly traded entity in the United States.
Circle’s Pursuit: Embracing Transparency
CEO Jeremy Allaire has consistently emphasized the significance of the IPO in enhancing trust and transparency for the company, which boasts major financial players such as Goldman Sachs, Fidelity, and Blackrock among its investors. While there have been rumors about Circle’s wavering commitment to an IPO, a spokesperson for the company has refuted such claims, asserting the unwavering pursuit of this strategic move.
Market analysts, including Messari’s Ryan Selkis, have noted the confidentiality of Circle’s IPO filing but highlighted the company’s strong performance, citing estimated revenues of $800 million in 2022 and a projection of approximately $1.5 billion in revenues and $300 million in profits for 2023. Circle’s decision to go public aligns with a broader trend among crypto companies seeking public status as a means to rebuild trust in the aftermath of the market challenges experienced in 2022.