Circle’s Confidential IPO Filing in the U.S.
Circle, the entity behind the USDC stablecoin, revealed on Thursday that it has submitted confidential paperwork to the SEC for an initial public offering (IPO). While the tech IPO landscape has been relatively dry for the past two years, 2023 witnessed a substantial surge in crypto stocks, exemplified by Coinbase’s remarkable 400% ascent.
Initially considering a public debut through a special purpose acquisition company (SPAC), Circle’s plans shifted following the dissolution of that deal in late 2022. The move to file for an IPO suggests a strategic pivot for Circle in navigating the dynamic financial markets.
Circle Eyes IPO, Submits Confidential Filing to SEC Following Approval of Bitcoin ETFs
In 2013, Jeremy Allaire and Sean Neville co-founded Circle, a financial technology company that has recently announced its intention to go public. The decision comes on the heels of the SEC’s approval of Bitcoin exchange-traded funds (ETFs). In a press release on Thursday, Circle disclosed that it has confidentially submitted Form S-1 to the Securities and Exchange Commission (SEC), a crucial step in the process of becoming a publicly traded company. However, specific details regarding the quantity and pricing of shares for the impending initial public offering (IPO) are yet to be finalized. The IPO is expected to proceed after SEC review, contingent on favorable market conditions.
Circle has a noteworthy funding history, having successfully secured $950 million from investors such as Fidelity, Marshall Wace LLP, and Blackrock. Despite these successes, Circle faced a setback in its previous attempt to go public through a Special Purpose Acquisition Company (SPAC) transaction in 2021. The proposed $4.5 billion deal, supported by Barclays Capital’s Bob Diamond, ultimately collapsed, leading Circle to reassess its strategy.
Renowned as the issuer of the USD Coin (USDC), the second-largest stablecoin by market capitalization, Circle currently manages a circulating supply of 25.20 billion USDC. Despite experiencing a 4.7% growth in the past 30 days, the overall USDC supply has seen a contraction over the past year. A significant depegging event in March 2023, coinciding with the collapse of Silicon Valley Bank, marked a challenging period for the stablecoin.
In a strategic move reminiscent of Coinbase’s approach, Circle has opted for a direct listing on the Nasdaq exchange for its public debut. This approach mirrors the path taken by the cryptocurrency exchange Coinbase during its launch on April 14, 2021. The decision to pursue a direct listing suggests that Circle is keen on maximizing transparency and providing the market with an opportunity to assess its value independently. As the company navigates the intricate process of going public, its trajectory will be closely monitored by investors and industry observers alike..
Circle’s pursuit of becoming a publicly traded entity has taken a new turn with its confidential filing for an IPO, following the setback of a failed $4.5 billion deal backed by Barclays Capital’s Bob Diamond. As the issuer of the USD Coin (USDC), Circle manages a substantial supply, navigating recent growth and overcoming challenges like the depegging event in March 2023. With a history of funding and aspirations to join the ranks of publicly listed companies, Circle is charting a course similar to Coinbase’s successful direct listing on the Nasdaq exchange in 2021. The unfolding developments underscore the dynamic nature of the crypto industry and its players as they navigate regulatory landscapes and market conditions.