Circle’s Potential IPO in 2024
Circle, the issuer of the stablecoin USDC, is reportedly considering the possibility of going public in the early months of 2024. This development comes almost a year after the company’s failed SPAC deal with Concord. Despite this setback, Circle’s CEO Jeremy Allaire has expressed the company’s intention to become publicly traded.
Circle in Talks for an IPO
According to undisclosed sources mentioned in a Bloomberg report, Circle is currently in discussions with advisors as it prepares for a potential initial public offering (IPO). However, it’s important to note that these deliberations are ongoing and there is no guarantee that Circle will proceed with a public listing.
In its previous attempt to go public through a blank-check deal in 2022, Circle was valued at $9 billion. Although the exact valuation for the potential IPO remains uncertain, the company has expressed optimism about its transition to a publicly traded entity without disclosing specific details.
Failed Spac Deal
Last December, Circle announced the termination of its business combination deal with SPAC Concord Acquisition Corp. The decision was reported to be mutual and approved by both companies’ boards of directors. The original proposal was announced in July 2021 when Circle had an estimated value of $4.5 billion, but it was revised in February 2022, doubling the company’s valuation to $9 billion.
Circle attributed the failure of the merger to the US Securities and Exchange Commission’s (SEC) delay in declaring the related S-4 registration effective within the specified timeframe. However, a spokesperson from the company denied blaming the financial regulator for this outcome.
Hot Take: Circle’s Path to Going Public
Despite facing challenges with its failed SPAC deal and regulatory hurdles, Circle is actively exploring its options to become a publicly traded company. If successful, this move could significantly impact not only Circle but also the broader cryptocurrency market as it seeks greater transparency and regulatory compliance.
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