Circle Internet, the issuer of USD Coin stablecoin, is eyeing a potential initial public offering (IPO) in early 2024, according to Bloomberg.
The company is currently in discussions with advisors to weigh the feasibility and timing of such a move to the public markets, as informed by undisclosed “people wither knowledge of the matter”. While details remain confidential, Circle’s consideration of an IPO reflects its growth ambitions and strategic planning.
A representative for Circle confirmed the company’s longstanding goal to become publicly traded. “Becoming a U.S.-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors,” the representative responded.
USDC currently has a market cap of $24.42 billion, ranked the sixth largest coin and the second largest stablecoin according to CoinMarketCap. Though Circle has not stated how much value it seeks in the IPO, its previous attempt to go public via a blank-check deal in 2022 was valued $9 billion.
Circle’s SPAC Attempt and SVB Challenges
In 2021, Circle agreed to a merger with a merger with Concord Acquisition Corp., a Special Purpose Acquisition Company (SPAC). But the merger eventually fell through. In 2022, Circle raised $400 million in a funding round from major financial institutions including Goldman Sachs, Blackrock, Fidelity, and others. The company was worth $7.7 billion ahead of the planned merger, according to Axios.
Earlier this year, Circle revealed that it had $3.3 billion of its $40 billion USDC reserves at the collapsed Silicon Valley Bank. The company requested wire transfers prior to the collapse, but the transactions did not complete. The price of USDC dropped to an all-time low of around 0.8774, distant from its intended $1.
Despite previous setbacks, Circle’s ambition for a public listing remains persistent, although no definitive IPO plans have been confirmed as the company stays silent on recent speculations.
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