- Circle is preparing an initial public offering (IPO) targeting a valuation of up to $5.65 billion.
- The company plans to offer 24 million shares at a price between $24 and $26 each.
- Out of these, 14.4 million shares will come from existing shareholders.
- ARK Investment Management has shown interest in purchasing up to $150 million worth of shares, while BlackRock aims to buy about 10% of the IPO stock.
- The IPO follows reported acquisition interests from both Ripple and Coinbase, and comes amid ongoing U.S. legislative scrutiny of stablecoins.
Circle, the company known for issuing the stablecoin USDC, is preparing to go public through an initial public offering in the United States. The proposed IPO involves offering 24 million shares, with the firm targeting a share price between $24 and $26.
According to official filings, 14.4 million of these shares will be made available by existing shareholders. At the top of the proposed pricing, Circle could reach a valuation of $5.65 billion. The company disclosed in its S-1 registration that ARK Investment Management has indicated an interest in purchasing up to $150 million worth of Circle shares.
Reports from Bloomberg highlighted that BlackRock intends to acquire around one-tenth of the shares sold in the IPO. BlackRock already serves as the custodian for nearly all of Circle’s reserves, which are primarily held in short-term U.S. Treasury bonds and overnight repurchase agreements.
Compared to its main competitor, Tether, Circle holds a larger share of its reserves in cash and overnight repos, as industry sources note. Stablecoins like USDC are cryptocurrencies pegged to the U.S. dollar and backed by reserve assets, which helps stabilize their value.
The news of the IPO comes after reports that Ripple, another large stablecoin issuer, had previously offered to acquire Circle. Coinbase, which holds an equity stake in Circle and co-manages USDC through the Centre Consortium, also reportedly considered acquiring the company.
In the United States, stablecoin companies continue to face scrutiny from lawmakers, with both the Senate and the House of Representatives reviewing regulatory proposals. Some of these legislative efforts have met opposition from Democratic lawmakers, who have raised ethics concerns regarding cryptocurrency ventures linked to the Trump family.
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