Stablecoin giant Circle goes public, injecting a strong boost into the U.S. IPO market
Stablecoin giant Circle successfully went public on Thursday, injecting a shot of confidence into the U.S. IPO market and encouraging more digital asset companies to list. Circle's IPO performance exceeded expectations, pricing well above forecasts, with subscription volume exceeding the issuance amount by 20 times. The stock price more than doubled after opening, ultimately closing with a gain of 168%. This is the most closely watched cryptocurrency IPO since Coinbase went public in 2021, which may boost the listing confidence of other crypto companies
According to Zhitong Finance APP, stablecoin giant Circle (CRCL.US) had a spectacular debut on Thursday, injecting a shot of adrenaline into the U.S. IPO market and potentially encouraging more companies in the digital asset and other sectors to go public.
It is reported that Circle's initial public offering (IPO) performance exceeded everyone's expectations, pricing well above the previously anticipated range, with the final subscription amount being more than 20 times the issuance volume. The company's stock price more than doubled shortly after opening and ultimately closed with a gain of up to 168%.
Circle's $1.1 billion IPO is the most notable cryptocurrency IPO since Coinbase (COIN.US) went public directly in 2021. Circle's performance may instill greater confidence in other cryptocurrency companies looking to go public.
Reports indicate that cryptocurrency custody company BitGo Inc. is considering an IPO later this year. Sources reveal that Kraken, one of the oldest cryptocurrency exchanges, is preparing to go public in early 2026.
Additionally, there are reports that cryptocurrency company Gemini has secretly submitted an IPO application and may go public later this year.
Circle has Scarcity Value
However, as a stablecoin issuer, Circle is distinctly different from other crypto companies like Strategy (MSTR.US), Coinbase, and Galaxy Digital (GLXY.US) that profit from the volatile prices of Bitcoin.
Circle is the first publicly listed stablecoin company, with most of its revenue coming from U.S. Treasury bonds and other income-generating instruments that support the value of its tokens. In contrast, most of the revenue for cryptocurrency exchanges like Coinbase comes from trading fees, resulting in much higher profit margins.
Rohit Kulkarni, a senior internet and capital markets research analyst at Roth Capital Partners, stated, "Investors are less concerned about these risks recently because Circle has scarcity value."
Given the rebound in the stock market and cryptocurrencies in May, along with the strong performance of several related companies in the market, the timing of this IPO couldn't be better. Online brokerage eToro Group (ETOR.US) went public in mid-May and has seen its stock price rise by 20% since then.
As Circle goes public, the U.S. Congress is considering legislation to regulate stablecoins. Circle claims to have the second-largest stablecoin, next to Tether Holdings SA's token, but also boasts "the largest regulated payment stablecoin."
Circle co-founder and CEO Jeremy Allaire stated on Thursday that this IPO will bring more trust, compliance, and transparency to Circle's regulated stablecoin network and help it collaborate with other financial institutions.
Allaire said, "Transforming into a public company will definitely enhance our ability to collaborate with mainstream institutions around the world." Circle's eye-catching debut may even help boost the value of companies in other sectors, especially for those whose valuations are lower than in previous years.
The next major fintech IPO is Chime Financial (CHYM.US), with a fully diluted valuation potentially reaching $11 billion. Reports indicate that this valuation is a significant drop from the $25 billion valuation in its 2021 private financing, but the company has attracted several times oversubscription
