Stablecoin USDC issuer Circle is reportedly in talks with its advisors about an Initial Public Offering (IPO) for early next year.
Early IPO In 2024?
Stablecoin USDC issuer Circle Internet Financial Ltd is reportedly exploring the possibility of going public with an Initial Public Offering (IPO) in 2024. This development comes after a previous attempt to go public through a Special Purpose Acquisition Company (SPAC) fell through in 2022.
According to insider sources, Circle has initiated discussions with advisors regarding a potential IPO next year. These discussions are ongoing, and it remains uncertain whether Circle will ultimately decide to proceed with a public listing.
Valuation and Past Attempts
While the exact valuation for the potential IPO remains unknown, it's worth noting that in 2022, Circle was valued at $9 billion when it attempted to go public through a blank-check deal. This historical context provides some insight into the company's potential market capitalization.
In July 2021, Circle had agreed to a merger with a Special Purpose Acquisition Company named Concord Acquisition Corp., a blank-check firm led by ex-Barclays Plc chief executive officer Bob Diamond, with the deal valued at $4.5 billion.
However, this arrangement ultimately fizzled, leaving Circle to explore alternative paths to becoming a publicly traded company.
Circle's Response
In response to inquiries about the potential IPO, a spokesperson from Circle remained tight-lipped, only commenting,
"Becoming a U.S.-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors."
Should Circle's IPO plans materialize, it would provide an opportunity for the public to acquire shares of a company that has remained privately held until now. The move could mark a significant milestone for the company and the broader cryptocurrency industry.
About Circle and USDC
Circle is the issuer of USDC, one of the world's largest stablecoins. Stablecoins are cryptocurrencies that are pegged to the value of an underlying asset, such as the US dollar, and are widely used by traders to facilitate the transfer of digital assets between exchanges. Circle's credibility is bolstered by its association with financial heavyweights like Goldman Sachs, Fidelity, and BlackRock, who have all invested heavily in the stablecoin issuer.
While USDC had reached a market capitalization peak of $55.9 billion in June 2022, it has since experienced a significant decline, currently valued at $24.6 billion. This decrease can be attributed to USDC's temporary depegging from the US dollar in March 2022 due to its $3.3 billion exposure to the now-collapsed Silicon Valley Bank. USDC briefly fell to $0.87 before rebounding to $1.
In response to these challenges, Circle has committed to sharing financial reports regularly and has engaged Deloitte as its auditor.
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.
