Circle Resumes IPO Plans Amidst Crypto Surge

Table of Contents

• Circle Files IPO
• Key IPO Details Yet To Be Decided
• Circle's Previous IPO Attempt 
• Tech IPO Market Landscape 

Stablecoin firm Circle has revealed that it has confidentially filed for an initial public offering with the US Securities and Exchange Commission (SEC).

Circle Files IPO

In a notable development, USDC issuer Circle has initiated proceedings to go public once again, marking a significant shift a year after terminating a prior deal. The company disclosed its move through a press statement on Thursday, revealing that it has confidentially filed for an initial public offering (IPO) with the SEC. 

The press release states, 

"Circle Internet Financial (Circle) today announced that it confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the 'SEC'), relating to the proposed initial public offering of its equity securities."

Key IPO Details Yet To Be Decided

While Circle has taken the plunge into the IPO process, crucial details remain undecided. The company has not finalized the number of shares to be offered in the public offering, and a specific price bracket for the shares is also pending determination. The SEC will undertake a thorough review of the application, with the subsequent IPO contingent on market conditions and regulatory approval.

Founded in 2013, Circle is renowned as the issuer of USD Coin (USDC), the second-largest U.S. dollar-pegged stablecoin globally, which has a market capitalization of more than $25.2 billion and was​​ introduced in 2018. 

Circle's Previous IPO Attempt 

This move comes a year after Circle terminated its prior plan to go public through a Special Purpose Acquisition Company (SPAC) with Concord Acquisition Corp. The initial deal, which would have valued Circle at around $9 billion, fell through in the wake of the SPAC market collapse in 2022, following the bankruptcy of crypto exchange FTX.

The timing of Circle's IPO resurgence aligns with a broader surge in the cryptocurrency sector. Notably, Coinbase, which acquired a stake in Circle in August, experienced a remarkable 400% surge in value in 2023. Other crypto-related stocks, including MicroStrategy and Bitcoin miner Marathon Digital, also enjoyed substantial rallies during the same period.

Tech IPO Market Landscape 

While the overall tech IPO market remained subdued for two years following a record year in 2021, the cryptocurrency shares bucked the trend. In December, Apex Fintech, a clearing firm, discreetly submitted its filing for a U.S. IPO. Additionally, Aspen Insurance, under the ownership of Apollo, has expressed consideration of a potential public offering in the year 2024.

This resilience was driven by a 150% surge in the price of Bitcoin. The approval of the first spot Bitcoin exchange-traded funds by the SEC is expected to catalyze the digital asset market further, attracting both retail and institutional investors.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.