Circle Considering IPO in 2024
Circle, the issuer of USD Coin (USDC), is reportedly considering an initial public offering (IPO) in early 2024, as per a report by Bloomberg on Nov. 7. While the stablecoin issuer is in talks with its advisors about the move, there is no certainty that it will result in a public listing.
In July 2021, Circle initially agreed to go public in a $4.5 billion merger with Concord Acquisition, but the deal fell through. According to a representative from Circle, becoming a U.S.-listed public company has long been part of their strategic aspirations.
The details of the potential IPO remain unknown as Circle has declined to comment on the rumors. If it were to happen, this IPO would mark the first time the privately-owned Circle offers shares to the public.
Valuation and Market Cap
In February 2022, Circle was valued at $9 billion after revising its merger deal with Concord. However, USDC’s market cap has seen a significant drop from its peak of $55.9 billion in June 2022 to $24.6 billion.
Investment and Depegging
Circle has received investments from several financial services firms, including BlackRock, Fidelity Management, Goldman Sachs, General Catalyst Partners, and Marshall Wace. In March, USDC depegged from the U.S. dollar due to its exposure to the now-collapsed Silicon Valley Bank but later recovered.
Hot Take
With Circle contemplating an IPO in early 2024 and USDC’s market cap seeing a significant drop, it remains to be seen how this potential move will impact the stablecoin’s future trajectory and its role in the crypto market.
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