Financial giant BlackRock reportedly aims to acquire a 10% stake in Circle's Initial Public Offering (IPO).
Circle Internet Group's Upcoming IPO to Raise $624 Million
New York, NY - Circle Internet Group Inc., the operator of the USDC stablecoin, is planning to go public through an initial public offering (IPO) on the New York Stock Exchange. The company aims to raise up to $624 million by offering 24 million Class A common shares, priced between $24 and $26 per share.
The IPO will consist of Circle selling 9.6 million shares and venture capital firms like Accel and General Catalyst selling 14.4 million shares. The offering includes a 30-day option for underwriters to purchase an additional 3.6 million shares to cover potential over-allotments.
Of the major investors, Cathie Wood's ARK Investment Management has signaled an interest to invest up to $150 million in the IPO. BlackRock, already a significant player in Circle's operations through the Circle Reserve Fund that holds around $30 billion in assets, is also reported to be a significant investor in the offering.
Circle targets a valuation of up to $6.7 billion on a fully diluted basis. The IPO will be managed by J.P. Morgan, Citigroup, and Goldman Sachs as joint lead active bookrunners, with Barclays, Deutsche Bank Securities, and Societe Generale also involved as bookrunners.
The IPO underscores the growing relationship between traditional finance and the crypto sector, with Circle moving towards public markets amid increasing political support and favorable regulatory signals for cryptocurrency-related businesses. Both Circle and BlackRock declined comment on the matter.
The IPO by the USDC stablecoin issuer is reportedly oversubscribed, with orders surpassing the number of shares available.
- Circle Internet Group's IPO, aiming to raise $624 million, will offer tokens in the form of Class A common shares, potentially attracting prominent investors like Cathie Wood's ARK Investment Management, who have shown interest in investing up to $150 million.
- The IPO also involves venture capital firms like Accel and General Catalyst, and significant players such as BlackRock, who already have investments in Circle through the Circle Reserve Fund managing around $30 billion in assets.
- With the IPO, Circle, the operator of the USDC stablecoin, is moving towards public markets, a step that underscores the growing relationship between traditional finance and the crypto sector, particularly in light of increasing political support and favorable regulatory signals for cryptocurrency-related businesses.
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